Study on the impact of business environment on private enterprises' technological innovation from the perspective of transaction cost

Nannan Wang, Dengfeng Cui and Yin Dong

Innovation and Green Development, 2023, vol. 2, issue 1

Abstract: Technological innovation of private enterprises is an important condition for promoting high-quality development of China's economy. This paper matches the regional business environment data with the data of A-share private listed companies from 2017 to 2020 to study the impact of business environment on private enterprises' technological innovation and its mechanism of action based on the perspective of transaction cost. The empirical results show that the optimization of regional business environment promotes the technological innovation of private enterprises. A quality business environment reduces private enterprises' rent-seeking expenses and agency costs, thus promoting their technological innovation. Heterogeneity analysis shows that at a higher degree of market competition, the business environment is more conducive to stimulate the enthusiasm and motivation of private enterprises' technological innovation. A quality business environment reduces the impact of enterprise size differences on private firms' technological innovation, and the uneven development of business environment among regions.

Keywords: Business environment; Rent-seeking expenses; Agency costs; Technological innovation (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2949753123000024
Open-access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ingrde:v:2:y:2023:i:1:s2949753123000024

DOI: 10.1016/j.igd.2023.100034

Access Statistics for this article

Innovation and Green Development is currently edited by Hai-Jie Wang and Chun-Ping Chang

More articles in Innovation and Green Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().