Equity Incentive, R&D Input and Innovation Output: Based on the Analysis of Small and Medium-sized Enterprises

Abstract

Under the influence of the general environment, many small and medium-sized enterprises are facing threats. However, some innovative enterprises continue to grow with innovation. This paper studies the relevant data of listed companies on the Growth Enterprise Market (GEM) from 2016 to 2021, aiming at exploring the relationship among equity incentives, research and development inputs and innovation outputs of small and medium-sized enterprises on the GEM. The research found that both equity incentive and R&D investment will bring positive impact on innovation output, and R&D expenditure plays an intermediary role between equity incentive and innovation results. It also inspires enterprises to alleviate the principal-agent problem through equity incentive in practice, to promote enterprise innovation and to promote the sustainable development of enterprises.