Abstract: In the current China, under the background of patent bubbles and innovation illusions in the micro-fields of scientific and technological innovation, this paper constructs an enterprise innovation decision-making model that includes two dimensions of innovation quantity and innovation quality, and discusses the micro mechanism of state-owned enterprises in the process of privatization reform by changing the innovation preference of enterprise managers, promoting enterprise financing constraints, reducing government subsidies to enterprises, and then affecting the real innovation output of enterprises. An empirical test using the data of listed Chinese manufacturing companies found that the privatization reform has a significant inhibitory effect on the increase in the real innovation output of enterprises, and it has a significant inhibitory effect on high-tech enterprises, mature enterprises, enterprises in the middle and downstream industries, and areas with better institutional environments. The inhibitory effect of enterprises is more obvious.
