Research On The Innovation Driving Effect Of Equity Incentive Embedded In The Patent Performance Conditions

Enterprise development is inseparable from innovation,whether it is technological innovation or management innovation,it has very important significance for enterprise development.High-tech enterprises have higher requirements for technological innovation due to their own development needs.The level of enterprise innovation ability directly determines the intrinsic value of high-tech enterprises.In order to solve the problem of entrusted agency in enterprise management and promote the improvement of enterprise innovation performance,more and more high-tech companies have implemented equity incentives.By increasing the equity share of company executives and core technical personnel,the company's managers and core technical personnel are transformed into the owners of the enterprise,so as to solve the problem of entrusted agency,ensure the enthusiasm of the company's executives and core technical personnel,and then improve the enterprise's technological innovation capabilities and innovation performance.However,equity incentives also face some problems in the implementation process:the setting of financial exercise performance conditions makes the incentive objects appear "short-sighted" behaviors,making the incentive more inclined to achieve short-term financial performance,and it is difficult to directly drive company innovation.How to strengthen the innovation-driven effect of equity incentives by introducing non-financial performance conditions,especially those that can directly incentivize innovation,has become an important and urgent issue to many companies.Beifang Huachuang Technology Group Co.,Ltd.is a leading enterprise in the manufacture of electronic process equipment and semiconductor equipment in China.In the context of the surge in demand in the semiconductor industry and the increase in the localization rate of semiconductor equipment in Chinese mainland,Beifang Huachuang launched equity incentive plans twice in 2018 and 2019.Compared with the equity incentive plans of other high-tech enterprises,Beifang Huachuang has embedded the performance conditions for the number of R & D patents in these two rounds of programs,and the patent performance conditions have become the feature of its two rounds of equity incentive plans.This article starts from the two equity incentive plans launched by Beifang Huachuang.Through case analysis,it is foundthat the equity incentive plan embedded in the patent performance conditions has a combination of patent performance conditions and financial performance conditions,and the combination of stock options and restricted stock,and the target of equity incentives focuses on the core technical personnel;the case company has the characteristics of being in a fast-growing industry,with its own postive financial background,perfect internal control system,and centralized shareholder power;The equity incentive plan stimulates the improvement of R&D revenue generation by increasing the company's R&D investment and R&D output,thereby achieving the driving role of innovation.At the same time,the research in this article has important policy implications: for some companies that want to improve their innovation performance,they can consider implementing an equity incentive scheme embedded in patent exercise performance conditions,combining financial performance conditions and patent performance conditions,taking into account both input and output,and avoiding the conditions designed too single,in order to improve innovation performance and release the innovation-driven role of equity incentives.