Research On The Path And Consequences Of Enterprise R&D Investment Under Equity Incentive

In the era of knowledge economy,innovation has become an important force to promote sustainable economic development and improve a country’s core competitiveness.In recent years,due to "stuck neck" incidents such as ZTE and Huawei HiSilicon,China has gradually realized the significance of technological innovation,and the total R&D investment and the intensity of R&D investment have continued to rise.As the main participants in the market,enterprises should undertake the important mission of economic innovation.However,due to the principal-agent contradiction in corporate governance and the particularity of R&D activities,the management often avoids R&D risks and reduces R&D willingness for their own interests.In addition,the high pressure caused by R&D activities and the mismatch of income and expenditure will also reduce the R&D efficiency of technicians and increase the turnover rate of technicians.Therefore,how to arouse the enthusiasm of managers and technicians for R&D to realize the long-term development of enterprises has attracted much attention from scholars.The equity incentive is considered as an effective measure to alleviate the contradiction of enterprise’s principal-agent contradiction and increase enterprise’s R&D investment.In response to the above problems,this article intends to explore whether the implementation of equity incentives can effectively promote the R&D investment of enterprises,and what is the corresponding influence path?On this basis,this article further explores whether R&D investment can be effectively transformed into a contribution to corporate performance?What is the effect of this strategy,and in what ways?This paper attempts to study the impact of equity incentive on promoting enterprise R&D investment and improving enterprise performance.This article combines theoretical analysis and case studies.Firstly,based on the principal-agent theory,human capital theory,endogenous growth theory,and technological innovation theory,this article comprehensively analyzes the importance of equity incentives to corporate R&D investment.Secondly,this paper expounds the specific path that equity incentives affect the enterprise’s R&D investment,and further discusses the economic consequences of R&D investment to the enterprise from the three stages of R&D,production,and sales.Finally,taking TCL Technology as the research object,this article analyzes the element differences between the two equity incentive plans of TCL.On this basis,this article compares and analyzes the different changes in TCL R&D investment after the implementation of two equity incentives to verify whether equity incentives will promote R&D investment.This article also examines the economic consequences of R&D investment under equity incentives from the perspectives of enterprise performance.This paper has the following conclusions:(1)The equity incentive is an important factor affecting the R&D investment of enterprises.Equity incentives can effectively alleviate the contradiction between enterprises’ principal and agent,and promote enterprises’ R&D investment.Different incentive elements have different effects on the promotion of R&D investment.(2)equity incentives mainly affect the R&D investment of enterprises from two lines of management and technical personnel.On the one hand,it can enhance the management’s R&D willingness,promote the management to formulate scientific R&D strategies,increase R&D capital investment,and increase the intensity of R&D investment;on the other hand,it can improve the R&D efficiency of technical personnel,which is reflected in the increase in the number and quality of R&D personnel.(3)For high-tech manufacturing enterprises,increasing R&D investment can promote technological innovation,increase innovation output,improve core competitiveness,and ultimately improve corporate performance.The research in this paper has reference significance for my country’s high-tech manufacturing enterprises to promote R&D investment and improve their comprehensive strength.