Research on incentive and technological innovation models of biopharmaceutical companies

Peoples' Friendship University of Russia, Faculty of Economics, Moscow, Russia

^* Corresponding author: Violetearwkx@outlook.com

Abstract

This article selects biopharmaceutical enterprises listed in high-tech industry as samples, using the Heckman selection model effectively avoid sample bias and according to linear analysis, this research tests the influence between senior management incentives and technological innovation based on the Chinese biopharmaceutical enterprises listed in high tech industry in a certain period. The empirical research results indicate that there is not a simple linear correlation between short-term salary incentives and technological innovation, and there is a curve relationship that first decreases and then increases among them; Long term equity incentives have a significant positive impact on technological innovation. This research aimed to find the maximum value of incentives, propose countermeasures and suggestions to avoid excessive salary incentives, appropriately improve the level of stock-based compensation, and establish a reasonable senior management incentive system for insight.