A Research on Internal Resource Uncertainty and Private Enterprise Innovation Capacity

Based on the current situation that Chinese private enterprise innovation mainly relies on its own funds,the pa.per,by taking private enterprise internal funds as the example,puts internal resource uncertainty into the existing research framework of external environment uncertainty and enterprise innovation to explore enterprise's innovative behavior reactions in different combinations of internal and external uncertainties. The theoretical matrix model reveals that the impact of the internal financial resource uncertainty on innovation decisions is greater than the external environment uncertainty and plays a dominant role in the selection process of innovation activities,and there is a negative correlation between internal financial uncertainty and enterprise innovation. This theoretical inference has been empirically proved by the survey data of enterprises,and private enterprises are more sensitive to the internal financial resource uncertainty than state-owned enterprises. The study shows that the government's policies,which encourage private enterprise innovation,should mainly focus to stabilize internal resource and help enterprises increase their income with a stable flow of funds. More specific,tax reduction is more effective than R D funding subsidies in stimulating enterprise innovation initiatives.