The Relationship Between Political Connection And Corporate Technological Innovation

In recent years,private economy of our country grew rapidly,and the importance of private economy in our country's economy keeps growing.According to the survey of Shenzhen Stock Exchange in 2008,the proportion that private economy accounted for GDP had been as high as65%.And the rapid development of private economy is inseparable with the active technology innovation activities of private enterprises.According to related survey,in 2012,65% of invention patents,80% of new products of China were from private enterprises,which means that the private enterprises are of great importance to improve the level of technological innovation in our country.Although private enterprises have made certain developments in economy,under the background of the system transforming to market economy system,private enterprises are still faced with a series of difficulties,such as having difficulties entering the regulatory industries controlled by government,having difficulties in getting scarce resources that government have rights to allocate,being intervened by government,etc.In this difficult situation,private enterprises often choose to establish close relationships with the government to alleviate the difficulties through various channels,thus formed the present widespread political connection phenomenon.Whether the informal institution,political connection will affect technological innovation activities of private enterprise is what this article wants to study.Previous studies of the influence factors of technology innovation studied from two perspectives,micro factors of the enterprise and the external macro factors,and studying the influence factors of technology innovation from the perspective of political connection enriches the study of the influence factors of technological innovation.So the study about the impacts of political connection on technology innovation of private enterprise under the economic transition background has both theoretical and practical significance.Firstly,this article elaborates the basic theory of rent-seeking theory,principal-agent theory,social capital theory,and generalizes domestic and overseas literature associated with politics and technology innovation.Then analyzed the system background of the political connection of private enterprises in our country in detail.Then this article elaborates the current situation of political association and technical innovation of private enterprises.Finally,by adopting the analysis method of combining theory and empirical analysis approach,this article chooses the gem listed private enterprises in 2009-2014 as research samples to carry on empirical research to study the effects of political connection on technological innovation activities of private enterprise.In addition to empirical study on the effects of political connection on of technological innovation activities,this article adds moderator variables institutional environment,export-oriented enterprises,ownership concentration,cash hold to explore whether these variables will moderate the effects of political connection on technological innovation.Through study,this paper forms the following conclusions: first,the political connection significantly inhibited the technology innovation activities of privately enterprise.Second,the institutional environment doesn't have moderating effects on the relationship between the political connection and technology innovation activities.Third,compared with the non-export-oriented enterprises,the negative influence of political connection on technological innovation activities of export-oriented enterprises is less.Fourth,with the increase of ownership concentration,political connection has less negative impacts on enterprises' technological innovation activities.Fifth,with the increase of cash hold,political connection has less negative impacts on enterprises' technological innovation activities.According to the results of this study,this paper put forward a series of policy suggestions,including breaking the government-led allocation approach of science and technology resources,setting up market-oriented mechanism of technology innovation market,maximizing the guiding function of market for the research and development direction,factor prices,factor configuration of innovation of technological innovation.