Study Of The Impact Of Equity Incentive On The Technology Innovation Of TMT Companies

In the future of the continuous integration of telecom,media/technologies(Internet)and information technology,the term TMT has emerged as the abbreviation of three English words: Technology,Media,and Telecom.It consists of four domains: mobile Internet,social networking,new media,and e-commerce.For TMT companies,the implementation of equity incentives is very necessary.First of all,TMT companies regard technological innovation as their core competitiveness.With the ever-changing industry and the constant emergence of new technologies,the pressure on technology will inevitably intensify,and the technological innovation of enterprises cannot leave this key factor.With the increasingly fierce international competition and the increasing demand for high-end talent,it is not uncommon for core talents to leave their jobs and start businesses while risk investment is prevalent.Even well-known companies such as Microsoft,Ali,Baidu,IBM,and Tencent are not immune.At this stage,China is facing the scarcity of high-level scientific research personnel and the lagging problem of personnel training.At the same time,because of the unique nature of the industry,the TMT industry will continue to face a shortage of talents.Can it attract and retain core talents for TMT companies? Future development is crucial.Therefore,it is very necessary to adopt equity incentives.This paper first analyzes the theories and then analyzes whether equity incentives can affect the technological innovation of TMT companies,and how the design of incentive program elements will affect the effect of equity incentives on technological innovation.Then try a single case study method and start from the two equity incentives of IFLYTEK,specifically verifying that the equity incentive will affect TMT companies through innovative performances of two different equity incentives in the three stages of R&D,conversion,and revenue generation.The role of technological innovation and the design of different elements will have an impact on the effectiveness of the incentive program.Finally,combined with the industry characteristics of the TMT,I make recommendations to the TMT companies on how to design their equity incentive program to maximize the promotion of technological innovation to achieve the purpose of this study.The result of this research shows that the implementation of equity incentives by TMT companies can effectively promote their technological innovation capabilities.Then,combining the characteristics of this industry,this paper puts forward some suggestions on how to design the equity incentive plan for TMT companies to maximize their contribution to technological innovation in terms of incentive timing,scope of incentive objects,length of incentive period,design of exercise condition etc.