Abstract：Based on the classic theory that competition enhances innovation,we introduced LOGIT method to study the moderating effect of the financing constraints and state-owned ownership.By using the data from the project “World bank's Enterprise Survey 2012 in China”,we revealed that competitive pressure significantly stimulated the process innovation and product innovation,and had no significant effect on other innovative activities;financial constraints had negative moderating effect on the relation between competition and process innovation/product innovation;state-owned company had positive moderating effect on the relation between competition and process innovation/product innovation
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