Research On The Impact Of Labor Compensation On Enterprise Innovation

In the early stage of China’s reform and opening up,due to the absolute surplus of labor factors and the relative lack of capital factors,enterprises often prefer capital owners in the process of income distribution,so that compared with other countries,the remuneration level of labor factors in Chinese enterprises is generally low.There have been some problems in the pattern of labor income distribution,such as small proportion of labor remuneration,large income gap,unreasonable wage structure and so on.With the further development of the economy,the problems exposed by the unreasonable income distribution structure are becoming more and more obvious.While frustrating the enthusiasm of workers for production,it also endangers the fairness and justice of the initial distribution of national income and distribution according to work,which is not conducive to the long-term healthy and stable development of China’s economy.It can be seen that alleviating the situation of low income of workers and truly improving the remuneration level of labor factors is not only the basis for realizing fair distribution and promoting common prosperity,but also the basis for ensuring the sustainable development of enterprises.It is an important research direction worthy of indepth discussion.Based on the above discussion,this paper analyzes the impact of labor compensation on enterprise innovation activities.Firstly,it discusses the research background of the article,emphasizes the significance of the research content under the background of the new era,systematically classifies and arranges the literature at home and abroad,and makes a summary;Secondly,from the perspective of factor substitution effect,income effect,crowding out effect and dynamic effect,this paper analyzes the mechanism of labor compensation on enterprise innovation;Thirdly,it combs the overall situation of labor compensation and enterprise innovation activities in China in recent years,and investigates the current situation of labor compensation in China’s income distribution pattern and the development level of enterprise innovation;Then,based on the sample data of non-financial listed companies in Shanghai and Shenzhen from 2007 to 2020,this paper studies the impact of labor compensation on enterprise innovation from the micro level;Finally,combined with the results of the specific analysis of each part,this paper puts forward a series of policy suggestions,hoping to be helpful to solve the problem.The results show that the impact of labor compensation on enterprise innovation investment is a "U" relationship.In the early stage of enterprise development,when the labor compensation is at a low level,increasing labor compensation has an adverse impact on enterprise innovation investment.When the enterprise develops to a certain stage and the employee compensation reaches a certain level,further increasing labor compensation is conducive to the growth of innovation investment;The impact of labor remuneration on enterprise innovation output shows an inverted "U" relationship.When labor remuneration is low,increasing labor remuneration is conducive to improving innovation output.When labor remuneration reaches a certain level,further increasing remuneration will reduce innovation output.Further research shows that increasing the salary of ordinary employees is more conducive to enterprise innovation than that of senior executives;The effect of labor compensation on the innovation of small and medium-sized enterprises is greater than that of large enterprises;The improvement of labor compensation in high-tech enterprises has a more significant effect on innovation activities.Based on this,this paper puts forward policy suggestions to optimize the labor wage system and improve the enterprise income distribution system from three aspects:reasonably improving the labor salary,controlling the range of labor salary level and developing enterprise innovation according to enterprise conditions.