Research On The Influence Of Equity Incentive On Technological Innovation

China's economic development has entered a new era,which has changed from high-speed growth to high-quality growth.Innovation is the first driving force in the key period of transforming the mode of production,optimizing the economic structure and transforming the driving force of growth.It plays a strategic supporting role in leading economic and social development and building an innovative country.As the main body of micro economic activities,the improvement of technological innovation ability of enterprises can lead to the improvement of national overall innovation competitiveness.However,it has become a common phenomenon for modern enterprises to separate ownership from management.Due to the consideration of their own interests,business managers do not pay attention to the innovation and R & D activities with high investment and risk and long cycle,which leads to the decline of work enthusiasm and R & D strength of core technical personnel,and has a negative impact on innovation activities.In order to solve the conflict of interest between shareholders and managers caused by the separation of two rights,many enterprises choose to implement equity incentive plan.At present,there are many studies on equity incentive abroad,and a relatively complete theoretical system has been formed.However,the time of implementing equity incentive in China is relatively short,and the research and policy-making of equity incentive system are not very perfect.Some problems have also been found in the practical application and operation of enterprises.Therefore,it is necessary to further study and discuss the relevant situation of the equity incentive system of Chinese enterprises.In this paper,Huawei,a representative company in the communication industry,is taken as the research object to analyze the impact of its equity incentive plan on technological innovation.Firstly,the paper introduces the background,significance and methods of the research.Then it combs the research and related theories about equity incentive and technological innovation at home and abroad,and analyzes the influence mechanism of equity incentive on technological innovation.The index system is established according to the three stages of investment,transformation and income generation of technological innovation.Then it analyzes the corresponding indicators by introducing the equity incentive plans implemented by Huawei in different periods.The conclusion is as follows:After the implementation of the equity incentive plan,Huawei's technological innovation has significantly improved,and with the expansion of the scope ofincentive objects,technological innovation will also increase.Specifically,the investment in R&D personnel and R&D expenses increases,thus increasing the number of patent applications,authorizations and the market share of new products,thus improving the operating income and the rate of return on total assets of the enterprise,and promoting the maximization of the long-term value of the enterprise.Finally,this paper puts forward some suggestions: according to the characteristics of their own industry and their own stage,enterprises should timely adjust their development strategy,and develop a set of scientific and reasonable equity incentive system to promote technological innovation..