Rent Seeking And Its Influence Upon The Innovation Of The Firms

Rent seeking theory is a popular topic in the commonality economics. Since Say's Law, rent seeking is generally thought as an activity of seeking right owner's aegis by people who want to obtain the economics rent. Rent seeking theory opened economics eyeshot up to productive field from nonproductive field, which deepened people's knowledge to public sector. From reformation and opening, China's economy has changed greatly. However, because of system's problem, seeking rent has become more and more serious. Today, innovation is an important motivate of persistent development, but rent seeking has baffled innovation's course, and then caused losses to our firms and economy.This article mainly discusses that how rent-seeking of the officers in charge of the market influence on the innovation of the firms and what principle the government must keep to in the course of anti-commercial bribe. It proves that only in the free market can the firms gain the maximal profit caused by innovation, as the same time it also proves that without free market the officers will maximize their own advantage as possible as they can by'an invisible hand', the better social condition, the more probably the officers seek rent, and the high remuneration of the officers can effectively prevent them from seeking rent. The article points out that to the officers, the government can raise the reward relative to the innovation or let the punishment of rent-seeking more heavily if it really wants to alleviate the effect of rent-seeking to the innovation of the firms.