Study On Influence Factors Of Investment In Technological Innovation

The economic reform of China has made great achievements attractingworldwide attention, however, the economic growth was sustained by high investment,high energy consumption and environmental pollution etc. It is an indisputable factthat the independent innovation ability of Chinese enterprise has left much to bedesired. It has attracted widespread attention these years whether she would be stuckin the middle income trap and reach a higher level of economic development, forChina is gradually marching into the Middle-income Countries. There is no doubt thatimproving innovation capability and then enhancing the international competitivenessof China is undoubtedly a key factor in ensuring a smooth transition acrossmiddle-income stuck. Lack of investment in technological innovation is the mainreason of insufficiency in innovation ability and shortage of competitiveness of ourcountry. This paper attempts to analyze, based on internal and external environmentperspective, the influencing factors to technological innovations in China’s listedcompanies.First of all, this paper reviewed the literatures about the research on theinfluencing effect factors to technological innovation, and then summarizes the sixinfluencing factors, which are firm size, executive incentive, ownership concentration,profitability, debt levels and the degree of marketization. Measurement index of eachfactor are determined afterwards on the basis of availability of data.In the empirical research, this paper is based on GEM listed company in Shenzhenin2012as a sample, using Structural Equation Model (SEM). To begin with, theresearch determines whether each latent variable observations is reasonable by meansof Confirmatory Factor Analysis. And what’s more, it reveals the mechanism thatfactors influence the investment of technical innovation by employing Path AnalysisThe empirical research conclusions are as follows: enterprise-scale has obviouslypositive effect to investment in technological innovation, while ownership concentration generates a significant negative effect to investment in technologicalinnovation. The effects of executive compensation and equity incentives totechnological innovation were put into a significant positive impact. Profitability oforganization has little positive effect to technological innovation. Impact on the debtlevel to technical innovation investment has not been verified; The degree ofmarketization produces a significant positive impact into both absolute and relativeinvestment level of technology innovation.On the basis of the conclusions of the empirical analysis, this paper separatelyfrom the macro and micro level put forward relevant policy recommendations. Finally,the limitations of this study are briefly described, and subsequent studies put forward.