Abstract: Under the background of "deceptive innovation" and "strategic innovation" widely existing in China's micro enterprises, this paper combs three characteristic facts of China's private enterprises in terms of overall innovation ability and breakthrough innovation ability by using the combined data of China's industrial enterprise database, China patent database and Google patent retrieval system. On this basis, it is proposed that the mixed ownership reform of private enterprises by introducing state-owned capital will effectively promote the improvement of enterprise innovation ability by alleviating the credit discrimination suffered by enterprises due to the "ownership background", so as to bring the innovation performance of "national progress". At the same time, after the empirical test using the above consolidated data, it is found that the mixed ownership reform can significantly promote the improvement of the overall innovation ability and breakthrough innovation ability of private enterprises, but the impact effect will be different due to the degree of enterprise reform, the development of private economy in the region and the degree of competition in the industry. The policy meaning of this paper is to actively promote the state-owned capital to take shares in private enterprises in various ways, but we should accurately grasp the shareholding proportion of state-owned capital, support the priority reform of private enterprises in areas with relatively poor private economic development and industries with relatively strong competition, and form a replicable and popularized experience model as soon as possible.
