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This study focuses on state ownership of Chinese private sector enterprises as important political capital. Using the data of private listed companies, we empirically study the impact of state ownership on technological innovation of private sector enterprises in different political and economic environments. The study finds that state ownership can effectively promote the innovation activities of private sector enterprises; when local core officials change, state ownership can effectively hedge the impact of political uncertainty. In addition, in regions with higher levels of economic development, state ownership plays a significant role in promoting technological innovation of enterprises. In regions with lower levels of economic development, state ownership plays no significant role in promoting technological innovation of enterprises.

Impact of state ownership as political capital on the technological innovation of private sector enterprises: evidence from China