Enterprise Technology Innovation and Total Factor Productivity: Based on the Perspective of Enterprise Life Cycle

Ziwen Wang

doi:10.6981/FEM.202410_5(10).0002

Authors

Ziwen Wang

DOI:

https://doi.org/10.6981/FEM.202410_5(10).0002

Keywords:

Technological Innovation; Total Factor Productivity; Enterprise Lifecycle.

Abstract

This article takes non-financial enterprises in China's A-share market as samples and explores the impact of technological innovation investment on total factor productivity from the perspective of enterprise lifecycle. Research has found that technological innovation investment in enterprises has a positive effect on total factor productivity in the introduction stage, growth stage, maturity stage, and elimination stage. Tthe intensity of its positive effect is stronger in the earlier stages of the enterprise's lifecycle, that is, the strongest in the introduction stage, followed by the growth stage, and gradually weakened in the mature stage and elimination stage. After discussing the samples, it was found that there is heterogeneity in the impact of technology innovation investment based on risk smoothing motivation and technology innovation investment inclined towards speculative profit seeking motivation on total factor productivity. After robustness testing, the original results remained significant. This study helps to explain the motivation behind technological innovation behavior in Chinese enterprises and provides practical reference for the investment intensity of technological innovation in enterprises at different stages of their lifecycle.

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