The Impact Of Technological Innovation Option On Entrepreneur’s Investment And Consumption In Incomplete Market

In recent years,enterprises’ technological innovation has been widely concerned by the academic and practical circles: under the background of China’s emphasis on the development of the real economy,the Party Central Committee attaches great importance to the important role of technological innovation in economic development,and clearly puts forward that enterprises are the main body of technological innovation;At the micro level,entrepreneurs have an urgent need to develop enterprises through technological innovation.The problem of investment and consumption is one of the basic themes in the financial field.Entrepreneurs’ technological innovation and investment and consumption are closely related to enterprises as the media:entrepreneurs are decision-makers of technological innovation investment,and entrepreneurs should consider their own investment and consumption issues.In China,a large number of enterprises have obtained technological innovation investment options,but they have not yet been put into production due to insufficient funds and other reasons.At present,there is also a lack of theoretical guidance for entrepreneurs who have obtained technological innovation options to make technological innovation investment decisions,taking into account the impact of technological innovation options on investment and consumption decisions.Based on this,this paper uses the real option theory,based on the actual situation of entrepreneurs operating enterprises,to build a real option model with the goal of maximizing the effectiveness of entrepreneurs.This paper studies the impact of technological innovation on the utility of entrepreneurs,their technological innovation decisions,and the optimal investment and consumption of entrepreneurs with technological innovation options.At the same time,this paper divides entrepreneurs’ technology innovation options into technology innovation at the time of exogenous fixed investment and technology innovation at the time of endogenous optimization,that is,it studies the situation that technology innovation options are European options and American options respectively.In addition,this paper studies the impact of technological innovation on entrepreneurs’ decision-making under the condition that technological innovation changes the heterogeneous risk in an incomplete market.The purpose of this paper is to clarify the impact of technological innovation on the entrepreneur’s utility in an incomplete market,and to give the entrepreneur’s optimal technological innovation investment decision and investment consumption decision to maximize the entrepreneur’s utility;It also puts forward suggestions for the government to promote technological innovation of enterprises from the perspective of entrepreneur incentive.The research of this paper shows that:(1)Technological innovation options increase the entrepreneur’s utility,delay the liquidation of enterprises,and entrepreneurs need to invest in enterprise assets at one time to increase the scale of enterprises during technological innovation;(2)There is a threshold value of the liquidity wealth capital ratio.When the liquidity wealth capital ratio of entrepreneurs is less than the threshold value,entrepreneurs do not execute technology innovation options.On the contrary,entrepreneurs immediately execute technology innovation options,and the liquidity wealth capital ratio threshold value of technology innovation options is lower at the time of exogenous fixed investment;(3)Technological innovation makes entrepreneurs’ willingness to save increase,industrial investment decrease,consumption increase,and the lower the cost of technological innovation,the more significant the impact on entrepreneurs;The higher the liquidity wealth capital ratio,the more significant the impact of technological innovation on entrepreneurs’ investment and consumption decisions.In order to maximize the utility of entrepreneurs,this paper suggests that:(1)entrepreneurs actively promote enterprise technological innovation,and choose the optimal time point of technological innovation under the condition of comprehensive consideration of cost and value of technological innovation;(2)Entrepreneurs with technological innovation options should reduce industrial investment,increase savings,prepare for technological innovation,and appropriately increase personal consumption;(3)When the liquidity wealth is low,entrepreneurs with technology innovation options should delay liquidation to avoid losing technology innovation options.the government should encourage entrepreneurs to invest in innovation costs for technological innovation...