Research On The Influence Of Equity Incentive On Innovation Performance Of High-tech Enterprises

As the carrier of the national innovation-driven strategy,the innovation capability of high-tech enterprises directly affects the overall process of “enhancing core competitiveness and becoming a scientific and technological powerhouse”.It is worth noting that the innovation capability of high-tech enterprises depends to a large extent on innovative talents(executives and core technical backbones).However,due to the agency conflicts and other problems,the innovation enthusiasm of innovative talents has been inhibited,which in turn hinders the innovation of high-tech enterprises.How to effectively motivate innovative talents has become a common problem faced by enterprises and the country.The emergence of equity incentives provides an effective way to solve this problem.As of the end of 2020,nearly 80% of high-tech enterprises have implemented equity incentives,but the actual results are not the same.Based on this background,this paper explores two questions in the form of case study: what is the innovation incentive effect of equity incentives? What are the paths of equity incentives affecting innovation performance?This paper firstly summarizes the research related to equity incentives and innovation performance,then theoretically sorts out the paths of equity incentives affecting innovation performance,that is,reducing angency costs,alleviating financing constraints and increasing risk tolerance,and analyzes the implementation background and the status of equity incentives in high-tech enterprises.On this basis,taking Sungrow as an example,it analyzes the appropriateness of equity incentive plans’ essential factors and adopts the comparative analysis method to explore the influence of equity incentives on innovation performance from three aspects:innovation input,innovation output and innovation efficiency.In addition,three paths are verified with the data of Sungrow.We found in this paper: firstly,for Sungrow,equity incentives do have a certain positive impact on its innovation performance.That is,it improves the innovation input and innovation output.At the same time,innovation efficiency is also closer to the DEA effective state.Secondly,the design of the equity incentive plans is relatively reasonable,which provides a guarantee for the improvement of innovation performance.Furthermore,Sungrow’s equity incentives mainly improve the innovation performance by reducing angency costs and increasing risk tolerance,but they have not alleviated financing constraints.The reason is that the “high-risk”nature of photovoltaic projects and the trade frictions they have suffered over the past decade have made investor more cautious about their investments.Last but not least,based on the status of equity incentives in high-tech enterprises and the case study of Sungrow,this paper provides some reference for other high-tech enterprises.