High-Technology Firm's Stock Incentives and R&D Expenditures:A Contract Model

In this paper,the authors analyze the relationship between high-technology firm's stock incentives and RD expenditures and establish a simple contract model including stock incentives and the firm's RD expenditures between shareholders and managers through analysis.The authors get the excellent combination through solving the model,and then analyze the influence of reference number to the excellent combination according to the factual meaning.Finally the authors draw main conclusion and provide some suggestions to improve high-technology firm's RD expenditures.