The Research On The Allocation And Optimization Of Technological Capital In The High-and-New Technology Enterprises

With the development of technology and the information era, technology,information and knowledge play more important parts in economics, and theybecome the indispensible elements. The modern elements enrich thetraditional element theory and there are six main elements in the market,including human, money, assets, technology, knowledge and information.When the elements are bought from the market by the corporations, theelements become relevant element capitals which are the drives to increasethe corporations’ value, so it is essential to analyze the elementcapitals first in order to analyze the process of value creation in acorporation. Technological capital is a strategic element capital in thehigh-and-new tech enterprises and it can let the enterprises gaincompetitive advantages. At the same time, it is known that increasing theinvestment on technology can increase the corporation’s value. In fact,the technological capital creates values together with other elementcapitals. It is important to know how to allocate finite capital to allkinds of elements since the total capital is fixed in a corporation. Thearticle illustrates that it is necessary to increase the investment ontechnological capital; however, it is more important to allocate limitedcapital to all kinds of elements efficiently and make the strategiccapital, technological capital, and other element capitals fit each otherwell.The purpose of this paper is to analyze the allocation of technologicalcapital, human capital and assets capital in the high-and-new techenterprises, and then to give suggestions to the enterprises on how tooptimize the allocation of their element capitals. Firstly, makedescriptive statistics of technological capital, human capital and assetscapital of the sample corporations. The descriptive statistics illustratethat the investment on assets capital is more than that on human capital and the investment on technological capital is the least. Secondly, weget the profit contribution rates of these three element capitals throughthe first model. The profit contribution rate of technological capitalis higher than the other two element capitals. It is easy to find thatthe element capital which has highest profit contribution rate,technological capital, has got least investment. The phenomenon is absurd,so the allocation of element capitals in the sample corporations isinefficient. The second model gives the best allocation. Comparing thebest allocation with the actual allocation, the high-and-new techenterprises should increase the investment on technological capital anddecrease the investment on human capital and assets capital. At the sametime, the managers should be cautious to invest in assets capital becauseassets take up a lot of capital.In the end, the paper states the suggestions for the corporations.Firstly, corporations should confirm strategic element capitals andgeneral element capitals, allocate limited capital to the element capitalefficiently, and establish efficient element capital structure. Secondly,corporations should improve internal regulations as a tangible hand toguide the allocation of capitals efficiently. Thirdly, managers shoulduse Element Capital Balance Sheet to manage the element capitals in thecorporations in order to make element capitals create greatest value.