How Chinese State-Owned Enterprises Change Their Dynamics in New Product Innovation?

Abstract

The innovation of state-owned enterprises and its adaptation to the market competition have been in the spotlight of studies. According to the panel data form Statistics on Science and Technology-Oriented Activities of Industry Enterprises, this research measures and contrasts the new product innovation investment and performance of Chinese State-Owned Enterprises (SOEs) and non-SOEs. It reveals that market competition is a positive effect on new product innovation input and output of state-owned enterprises, as non-SOE, the relationship between competition intensity and new product innovation output of state-owned enterprises appears exponential relationship. Furthermore, it discovers that non-SOE is more sensitive to competition intensity than SOE. Under the different competitive environment, both of them play differents role on promoting development of innovation and stabilising the market.