Informal Sector Competition,Business Environment And Entrepreneurial Innovation

In the process of economic transformation,due to the large amount of competition in the informal sector,enterprises usually choose to innovate in two ways:the first is exploitative innovation,and the second is exploratory innovation.Due to the difference in technology content between the two approaches,it is very important for formal enterprises to find a proper balance between the two approaches when facing competition from the informal sector.In addition,in the context of the strategy of building an innovative country and made in China 2025,it is of great significance to study the competition in the informal sector and the innovation behavior of manufacturing enterprises,and to discuss the competition in the informal sector which innovation behavior enterprises choose.This paper takes informal sector competition and enterprise innovation behavior as the research object,selects world Bank survey data on Chinese enterprises(2013)and conducts regression test to explore the influence of informal sector competition on enterprise innovation behavior,and considers the moderating effect of business environment.First of all,based on our country exists in the process of economic transformation of the informal sector competition,enterprise innovation ability is weak,the problem of after finishing the related literature at home and abroad,probes into the informal sector from the perspective of doing business competition influence on enterprise innovation behavior,constructed in a business environment to adjust the regulating effect of variables,and puts forward the corresponding hypothesis.Then,the paper makes an empirical analysis of the samples by using relevant measurement software,and thus obtains a series of data and conclusions illustrating the relationship between informal sector competition,business environment and enterprise innovation behavior.According to the conclusion,competition in the informal sector makes enterprises more inclined to carry out exploratory innovation,so as to prevent the infringement of intellectual property rights by the informal sector with technical barriers and better protect their innovation results.However,it has a positive but insignificant influence on enterprise utilization innovation.To some extent,the business environment enhances the influence of informal sector competition on enterprise innovation behaviors.A good business environment will weaken the influence of informal sector competition and make enterprises more willing to carry out innovation behaviors.Finally,based on the above research conclusions,someapplicable countermeasures are provided :(1)the government should strengthen efforts to optimize the business environment;(2)Enterprises should increase r&d investment and industrial upgrading;(3)Enterprises are brave enough to take up legal weapons to protect their intellectual property rights;(4)It is essential to form a high-quality and stable supply chain;(5)Optimize the technological structure of the enterprise.These measures will help guide the informal sector to develop in a direction conducive to enterprise innovation and help China's manufacturing industry to better face international competition.