Investment, Benefit and Incentive of Enterprise Technological Innovation

How to calculate optimal amount of investment on the enterprise technological innovation is an important issue that attracts attention of scholars. This paper marks off two concepts of basic investment and benchmark investment on the enterprise technological innovation. The basic investment is an amount of investment on the enterprise technological innovation without incentive contracts,and the benchmark investment is an amount of investment on the enterprise technological innovation to satisfy optimal incentive contracts. Then,with Principal-agent model and Cournot model,this paper finds a way to calculate the amount of investment on the enterprise technological innovation in optimal incentive contracts. This method offers a theoretical basis for enterprises to constitute developing programming of technological innovation and for governments to constitute the policies and measures of inspiring enterprises technological innovation.