How state-owned shareholders under government intervention affect the re-innovation decision of enterprises after technological innovation failure?

In a mixed ownership reform context, the participation of state-owned capital in private enterprises affects re-innovation decisions after the failure of technologicalinnovation. This article takes a sample of A-share pharmaceutical manufacturing listed companies in China to test the impact of state-owned shareholders and theirshareholding ratios on the re-innovation decisions after these enterprises have experienced technological innovation failure. The research found that state-ownedshareholders in these enterprises are more likely to reduce additional innovation and adopt new innovations after the experience of failing to implement technologicalinnovation. This phenomenon is more obvious with the increased proportion of state-owned shareholders. In addition, government intervention can effectively suppressthe positive impact of state-owned shareholders on new innovation in enterprises that have experienced technological innovation failure. This paper aims to provide a theoretical basis and decision-making reference for private enterprises to improve their governance structure by introducing state-owned capital shares and relevant government departments to stimulate and optimize their re-innovation decision after technological innovation failure through appropriate intervention in private enterprises’ technological innovation.