Literature Review Regarding Corporate Innovation

Abstract

This paper systematically reviews the determinants and consequences of corporate innovation. The main findings are as follows. From a micro-level perspective, the diversification of the gender structure of the board of directors, the improvement of the welfare of employees, the corporate social responsibility performance, the external competitive environment, and the choice of innovation strategy can positively promote the company’s innovation and ensure the quality, efficiency, and success rate of innovation. From a macro perspective, judicial independence stimulates innovative activities, while the promulgation of the monopoly law and the uncertainty of the economic policy will dampen the incentives to innovate. As for the consequences of innovation, it helps enterprises transform and upgrade, brings efficient management mode more in line with the operation of enterprises, creates differentiated products for enterprises, helps enterprises reduce costs, and improves the efficiency of employees, etc. This literature review focuses on several latitudes and multiple aspects to elaborate their comprehensive impact on innovation so that readers can understand faster and more conveniently. Moreover, it provides direction for innovation for companies and can also make countries more aware of the importance of innovation. Collectively, this survey is a supplement to the existing literature and has practical implications.