The Influence Of Equity Incentive For Senior Executives And Technical Talents On Enterprise R&D And Innovation

With China's economic development entering a new stage,the past competitive advantages can no longer sustain rapid economic development,and scientific and technological innovation has become a new engine to boost economic development.If an enterprise wants to maintain a leading position in the industry,it must be committed to research and innovation.Only by creating new products or technologies ahead of competitors can we gain an advantage in the fierce competition.The key to R&D innovation lies in people.Executives and technical personnel are the key forces of enterprise R&D innovation.The former is the decision maker of R&D activities,while the latter is the executor of R&D activities.However,under the traditional compensation system,senior executives and technical talents cannot share the residual earnings of the enterprise.Therefore,the goals they pursue are different from those of shareholders,and the motivation of R&D and innovation cannot be fully stimulated.Therefore,some enterprises actively explore and carry out equity incentive plans,and include senior executives and technical talents into the incentive scope,in order to stabilize the talent team,increase its power of research and innovation,and produce more high-quality innovation results.The research content of this paper is as follows: firstly,this paper sorts out the domestic and foreign scholars' research on equity incentive from different perspectives,analyzes the relevant basic theories,and draws on the previous scholars' research to establish the research framework of this paper.Secondly,it introduces the current situation of equity incentive and R&D innovation in China.Then,in the chapter of case background,it first explains the reasons for the selection of the case,then briefly introduces the relevant situation of ZTE Corporation,and makes a comparative analysis of its three-phase equity incentive plan.Then,according to the process of research and development activities,from three perspectives of research and development input,innovation output and transformation of research and development results,this paper deeply analyzes the impact of the implementation of equity incentive on its research and development innovation ability,and evaluates the advantages and disadvantages of the equity incentive plan of ZTE.Finally,the case analysis above is summarized,the research conclusions of this paper are drawn,and relevant suggestions are put forward,in order to provide guidance for enterprises to develop a more reasonable and effective equity incentive plan.The innovation of this paper is as follows: First,it adds the case study data of equity incentive and enterprise R&D innovation.Most of the existing research literature on equity incentive focuses on equity incentive and corporate performance,equity incentive and executive behavior,etc.The research on R&D and innovation focuses more on the stage of R&D investment,while there are relatively few literatures on the impact of other stages of R&D activities,and most of them are empirical studies.At the same time,this paper focuses on the impact of equity incentive for technical talents on enterprise R&D and innovation.Most of the existing literature on the subject of equity incentive only focuses on senior executives,ignoring the importance of technical talents.This paper enriches the related research in the field of equity incentive;Second,this paper adopts the method of case study,using a variety of analysis methods,according to the process of research and development activities,from three perspectives of research and development input,innovation output capacity and research and development achievement transformation capacity,in-depth analysis of the implementation of equity incentive on the impact of its research and innovation ability,and summarizes the experience and shortcomings of equity incentive scheme,for the theoretical research of equity incentive provides a new idea.The deficiencies of this paper are as follows: firstly,this paper adopts the single case study method,and only one company,ZTE,is selected as the research object,so the horizontal comparison is insufficient.At the same time,ZTE has been established for a long time and is the leader in the industry.Moreover,the company's equity incentive plan was implemented after the listing.For enterprises that do not meet the characteristics of these companies and are not listed,the reference significance of ZTE's equity incentive case is relatively limited.Secondly,the R&D innovation of any enterprise is the result of multiple internal and external factors,and it is impossible to be influenced by the single factor of equity incentive.Due to the limited ability of the author,other possible factors have not been studied.