Frontiers in Business, Economics and Management ISSN: 2766-824X | Vol. 5, No. 2, 2022 146 The Influence of the Third Distribution on the Innovation Ability of Enterprises Yuqing Li School of Accounting, Anhui University of Finance and Economics, Bengbu, Anhui, CO 233030, China Abstract: Facing the vigorous development of the third distribution, its supporting mechanism is gradually improving. Therefore, combining the development of the third distribution, this paper analyzes the factors that affect the innovation ability of enterprises from the aspects of market mechanism, government capacity, legal system and social ethics, and proposes the path to enhance the innovation ability of enterprises. Applying the proposed innovation path to the actual development will enable enterprises to effectively improve their innovation ability and competitiveness in the face of the third wave of distribution development, so as to achieve the innovative development of the entire market. Keywords: Third distribution, Enterprise innovation. 1. Introduction In 2021, the total GDP of China will reach 11.44 billion yuan, and the per capita GDP will exceed 10000 US dollars,accounting for 77% of the US GDP [1]. Through the efforts of the Communist Party of China and all Chinese people, China's economy has achieved rapid development, creating and accumulating huge social wealth. However, with the rapid growth of wealth, our society has encountered a variety of problems, the most significant of which is the problem of excessive income gap. The Gini coefficient has risen from 0.18 in the early days of reform and opening up to 0.43-0.47 in recent years [2], which has exceeded the internationally recognized standard of 0.4, indicating that most social wealth is controlled by a few people. At the same time, in addition to the problem of income gap, new social problems such as population aging, regional gap and left behind children are also emerging. The "pyramid" pattern of income distribution and these social problems have seriously hindered the further development of China's economy and society. In order to ensure the sustainable and healthy development of social economy, the Fourth Plenary Session and the Fifth Plenary Session of the 19th CPC Central Committee pointed out that we should attach importance to the role of the third distribution and improve the pattern of income and wealth distribution. The third distribution is an important path to achieve common prosperity. To achieve common prosperity is the desire of the whole people and the essential requirement of socialism. In addition, the third distribution is an important means to narrow the gap between rich and poor, an important way for enterprises to fulfill their social responsibilities, and an important measure for enterprises to improve internal and external benefits through interaction with society [3]. The third distribution is a social mechanism that is independent of the primary distribution and redistribution, pursues fairness and justice and shared development based on social forces, and contains economic and government mechanisms [4]. It is of great significance for narrowing the income gap, rationally distributing social wealth, maintaining social fairness and justice, and achieving shared development [5]. The third distribution is the voluntary provision of property, goods or services by social forces and enterprises under the influence of their internal moral constraints, cultural accomplishments and customs, in pursuit of higher spiritual satisfaction and social benefits [6]. It has gradually developed into a more extensive social behavior, which has also had a great impact on the microeconomics due to the improvement of factor market, government capacity, legal system and social ethics. Facing the new scenario environment formed by the third distribution, some factors affecting enterprise innovation are also changing. Enterprises should seize the key to improve innovation ability, enhance innovation ability, grasp the market initiative, and expect better development. 2. Development of the Third Distribution The third distribution had already appeared in the primitive society and was the only distribution mode at that time. With the continuous development of society, market economy and political groups have evolved. Since then, primary distribution and redistribution have become the main distribution mode, while tertiary distribution has become the auxiliary distribution mode [7]. The primary distribution is driven by the interest guidance and pursues the efficiency goal by the market operation mechanism; The second distribution is driven by government responsibility and pursued the goal of fairness by government regulation. The primary distribution is based on the high efficiency principle of market pursuit of economic benefits, which may lead to the asynchrony between economic benefits and social benefits, and the income gap caused by personal resources and talents may cause social equity problems. At this time, it is necessary for the government to realize the redistribution of interests through various ways, so as to stabilize social harmony. However, there are also defects in government regulation. The government mainly improves the problem of uneven income distribution through taxation and administrative means, and the government does not directly participate in market operations, which indicates that the government cannot fundamentally solve the problem of uneven market distribution. With the continuous accumulation of social wealth, based on Maslow's demand theory, high-income people began to explore how to obtain spiritual satisfaction and expand social benefits. The third distribution is the 147 voluntary participation of social members in the flow of social wealth under the moral pursuit, which reflects the consciousness of voluntariness and dedication, and is the higher spiritual pursuit of social subjects. The third distribution adopts a variety of operating modes, giving consideration to efficiency and fairness, and achieving reasonable distribution of resources through the combination of market and government, so as to gradually achieve common prosperity in high-quality development. When Li Yining first proposed the third distribution, China was in the early stage of building a socialist market economy, and the market economy was just starting. The state and society paid more attention to market distribution, that is, the primary distribution, but the third distribution was not paid attention to. Until the beginning of the 21st century, with the prosperity and development of the economy, the research on the third distribution was mostly related to harmonious society, finance and taxation, public policy and charity itself. From 2013 to 2018, the research on the third distribution fell into a low ebb. After 2019, due to the attention of the Party and the state, and listed it as an institutional arrangement, the third distribution received unprecedented attention, and the academic community re studied its connotation, characteristics and policy system. In 1994, Mr. Li (1994) [8] put forward the concept of the third distribution for the first time and defined it as: distribution through personal donation under the role of morality. Since then, some scholars from the perspective of public welfare and philanthropy believe that the third distribution is the behavior of enterprises, groups and individuals who voluntarily help the poor and promote public welfare through non-governmental donations, philanthropy, voluntary action and many other ways under the influence of morality, culture, habits, etc., which is a beneficial supplement to redistribution [9]. Or from the perspective of mechanism and system, it is believed that the third distribution is a voluntary donation of disposable income by individuals or enterprises to establish various systems and mechanisms to realize the redistribution of social wealth [10]. From the perspective of market economy, other scholars believe that the third distribution is a proposition about how to adapt the wealth flow of a rich society to the pursuit of individual spirit and the people's better life [11]. The academic understanding of the third distribution has been continuously extended, deepened and improved. We can find that the subject, realization method, influence scope and value pursuit of the third distribution have changed. From the perspective of subject dimension, due to economic development and changes in major social contradictions, the people's pursuit of material has been basically satisfied, and they want to pursue more spiritual satisfaction and social benefits. Therefore, the subjects of the third distribution are not limited to high-income groups, but more middle-income groups, social organizations and enterprises have emerged [6]. From the perspective of realization form, the third distribution not only includes charitable donations in funds, but also includes voluntary services, charitable funds and welfare lottery [11]. From the perspective of the scope of influence, the deep meaning of public charity is not only to directly help the weak, but also to improve the development of people's livelihood. The third distribution has developed from the initial rescue to education, medical care, environmental protection and other areas of people's livelihood to promote the development of public utilities [12]. From the perspective of value pursuit, the third distribution is under the guidance of social values such as kindness, public service and charity, and encouraged by laws and policies, Driven by the dynamic "social hand". Not only the donor will get a sense of happiness and satisfaction slowly, but also the recipient will get a sense of achievement. In this process, love will be passed on, and the core socialist values will be sublimated. The third distribution has broken through the limitation of helping the weak, moving towards a profound value pursuit of scientific exploration, promoting social development, and promoting peace and development around the world. The development of the third distribution has promoted the gradual maturity of China's market mechanism, the continuous improvement of government capacity and social ethics, and the continuous improvement of the legal system. From the perspective of the market mechanism, the third distribution, the primary distribution and redistribution should be coordinated to expand the proportion of middle- income groups, increase the income of low-income groups, rationally regulate excessive income, ban illegal income, and form an olive shaped distribution structure. On the one hand, this kind of adjustment will reward legal and compliant income, reduce illegal income and automatically adjust excessive income by building an appropriate market mechanism and supervision system. The market operation mechanism is gradually mature and healthy. Through the liberalization of resource allocation and flow, the regulation of excessive income can be better realized. When the income of a department in the economy is higher than its marginal contribution rate, the resources will accelerate to flow into the department, and the competition will intensify, which will automatically reduce the profits and income of the department. On the other hand, three distributions and common prosperity can further optimize the income distribution structure, gradually narrow the polarization gap, improve the consumption capacity of low-income groups, increase consumption demand, and activate market vitality. From the perspective of government capacity, the development of the third distribution encourages social members to donate part of their income, time and services to people in trouble and promote the development of people's livelihood, which, to a certain extent, solves the social problems such as difficulties in medical care, employment and schooling, helps local governments to carry out social assistance, alleviate government financial pressure, and improve the government's public service capacity, Thus, the government has more funds and time to support market development. From the perspective of the legal system, in order to maximize the enthusiasm of enterprises and individuals for charitable donations and promote the development of the third distribution, the state has continuously improved laws, regulations and supporting policies, and established and improved the tax and industry legal system [13]. A sound donation system and a loose policy environment can give full play to the incentive role of the legal system on social donations. From the perspective of social morality, morality is the core driving force of the third distribution, and the social responsibility, ideology and volunteerism of social members and organizations promote them to serve the public. The development of the third distribution will inevitably promote the formation of a good atmosphere in society and promote the development of social morality. 148 3. Factors Affecting Enterprise Innovation from the Perspective of the Third Distribution The third distribution has gradually transformed into a wider range of social behavior, which has also resulted in a wider range of social effects. Enterprises are the main participants in income distribution. Their participation in the third distribution can not only directly affect the operation effect of the third distribution, but also affect the microeconomics. The process of enterprise innovation is a process in which enterprises continuously collect, integrate and utilize various available resources. The market, government, law and morality affect the rational allocation of resources. They are continuously optimized during the third distribution and development process, which has a key impact on enterprise innovation. According to the development of the third distribution, this paper studies the factors that affect enterprise innovation. 3.1. Market Factors The third distribution is to donate one's own property or time under the idea of "doing good" to help others or enterprises and promote social development. Therefore, the third distribution can narrow the social gap between the rich and the poor, promote the harmonious coexistence of social groups, cultivate a social culture of kindness, and thus promote the integration of social resources [7]. As an important part of social resources, factor market plays a crucial role in the allocation of market resources. Its allocation level affects the ability and cost of enterprises to obtain resources, and thus affects the willingness and ability of enterprises to innovate. Capital factor market is usually related to enterprise financing activities, including stock financing and debt financing. Both stock market and debt financing are related to market supply and demand, industry situation and enterprise behavior. Since China began to explore the great revolution of reform and opening up, the socialist market economy has developed rapidly. However, due to excessive government intervention, the marketization process and the factor market are not completely matched, and the factor market is distorted [14]. On the one hand, the third distribution is to further build a mature market operation mechanism and supervision system to regulate income, further improve and mature the development of factor markets, further reduce government intervention, more resources are allocated by the market, the resource allocation mechanism of the market is relatively perfect, the information transparency is high, and stimulate market vitality. On the other hand, enterprises actively respond to the call of the state and participate in public welfare and charity activities, which can further establish reputation capital. Enterprises are more likely to obtain funds and resource support from investors, creditors and the public, thus encouraging enterprises to further strengthen innovation activities. The labor factor market is closely related to market- oriented development, residents' lives and income distribution. Promoting the level of market-oriented labor allocation is the key to promoting scientific and technological progress and improving the efficiency of all factor production, which is of great significance to economic and social development [15]. Some participants in the third distribution will subsidize some students to complete their studies or improve the infrastructure of colleges and universities, expand the number of high-quality talents [16], and provide talent reserves for enterprise innovation. The developed labor market is conducive to the high level of knowledge workers to play their own abilities, and improve the probability of enterprise innovation. In addition, the third distribution promoted the industry university R&D exhibition to a certain extent, strengthened the cooperation between universities and enterprises [17], and provided a solid foundation for the innovative development of enterprises. Let innovation come to the market from the market, integrate scientific and technological innovation with market development, accelerate the implementation and transformation of scientific and technological achievements, constantly promote the mutual transformation of industry, university, research and use, and provide strong scientific and technological innovation support for high-quality economic development. 3.2. Government Capacity The socialist market economy is an economic system in which the market plays a decisive role in the allocation of resources under the national macro-control. The Chinese government holds the allocation of scarce resources and the legitimacy standards, such as government subsidies, tax incentives and project approval, which affect the production and operation activities of enterprises. The vigorous development of the third distribution has improved people's livelihood and infrastructure, solved some social problems, eased the financial pressure of the government to a certain extent, and strengthened the government's public service capacity to a certain extent. The stronger the financial capacity of the government, the more powerful material support it can often provide to enterprises, and the easier it is to stimulate enterprises to engage in R&D and innovation activities. In terms of microeconomics, enterprises are more willing to set up innovative R&D institutions in areas that can provide more material support. In addition, the government with strong public service ability can not only provide a good environment for enterprise innovation by establishing high- tech development zones, but also build a financing platform and innovation platform for entrepreneurs' entrepreneurial behavior and innovation behavior, and provide strong relationship resources for enterprises [18]. Under the background of vigorously advocating the third distribution, the government's resource allocation capacity and administrative efficiency have been further improved. On the one hand, enterprises' active participation in charitable and public welfare activities can not only obtain government support, thus obtaining government subsidies, tax preferences, etc., but also gain public recognition and trust, thus improving the resource supply, market demand and competitive environment of enterprises [19], providing funds and resource support for innovation, thus improving enterprises' innovation willingness and increasing innovation investment. On the other hand, the improvement of administrative efficiency reduces the institutional cost, saves money and time for enterprises, improves the level of market competition, promotes economic development, ensures the timeliness of innovation, and thus promotes the R&D and innovation activities of enterprises. 3.3. Legal System The legal environment is an important condition for the 149 production and operation of enterprises, and the third distribution has further improved the legal system. First of all, the relevant provisions of the Company Law have been optimized to further constrain operators, protect the rights and interests of stakeholders and encourage enterprises to assume social responsibility. Protecting the rights and interests of small and medium-sized shareholders and giving full play to entrepreneurship will help the company focus on long-term development and enterprise innovation. Secondly, the legal system of intellectual property has been improved. The legal system with intellectual property as the core plays a crucial role in encouraging enterprises to innovate independently. The protection of intellectual property rights can enable enterprises to obtain monopoly rights due to their breakthrough innovation in the short term [20]. The strength of enterprise research and development is affected by the protection of legal property rights. The granting of intellectual property rights encourages enterprises to carry out innovation activities. Finally, we will further improve the laws on the protection of the rights and interests of stakeholders, such as Food Safety, Consumer Protection, and Labor Law. Protecting stakeholders will help enterprises find a common development point with society, focus on the development of long-term interests, take a sustainable development path, and then increase R&D and innovation activities to continuously improve enterprise value. 3.4. Social Ethics The third distribution is a way of income distribution in which high-income groups transfer assets to low-income groups on a voluntary basis. Morality and kindness are the soul of this distribution. The vigorous development of the third distribution is bound to further promote traditional culture and socialist core values, and gradually form a harmonious and beautiful socialist society. In a good moral environment, social groups have common values, which can coordinate the value pursuit among members, guide the development direction of innovation, and enable members to work together in the same direction to promote enterprise innovation [21]. On the one hand, the improvement of enterprise ethics means that enterprise members can trust and cooperate with each other, and strive for the same goal, which is conducive to a good cooperative relationship between organizational members. On the other hand, enterprises with good character are more tolerant of trial and error, and are brave to try, risk, and forge ahead to create an atmosphere conducive to innovation. 4. The Path to Improve the Innovation Ability of Enterprises from the Perspective of the Third Distribution Based on the analysis results of the third distribution development and its influencing factors on enterprise innovation, the corresponding innovation capability improvement paths are proposed from the market, government, law and morality levels. The improvement of the enterprise's innovation capability needs to take the sustainable development of the enterprise as the goal, take the realization of the innovative development of the whole market as the ultimate goal, follow the principles of combining adaptability and breakthrough, combining short-term benefits with long- term effects, and combining independent innovation and collaborative innovation, so as to effectively promote the improvement of the enterprise's innovation capability. 4.1. Grasp Factor Market and Form Innovative Resources The development of the third distribution enables resources to be transferred across regions and industries, realizing the social integration of resources, and further realizing high- quality development. On the one hand, the third distribution narrowed the gap between the rich and the poor, and low- income people received subsidies from social caring people, which to some extent increased social consumption demand, promoted the economy to develop in a positive direction, and laid the foundation for enterprise innovation. On the other hand, the government promotes the reform of the factor market, reasonably guides the flow of resources, optimizes the resource allocation structure, and allows more resources to flow to enterprises with greater development potential. Therefore, enterprises should form their own consciousness of development subject, strengthen their own strength, and appropriately change their characteristics, for example, moderately expand their scale, improve their export-oriented and technology intensive degree, and improve their economic performance [22]; Improve the multi-level capital structure, improve the overall use efficiency of resources, coordinate resource allocation and enterprise development, avoid excess capacity caused by unreasonable use and excessive use of resources, and improve the level of innovation; Form innovative cooperation relations with universities and scientific research institutions, and promote in-depth exchanges of information technology capital, human capital and other elements in industry university research cooperation; We should formulate appropriate treatment for talents to attract the inflow of high-tech talents. At the same time, we should improve the incentive and restraint mechanism for internal employees and build innovation strategies, such as formulating appropriate career development channels, performance evaluation and management systems, and equity incentive systems for core technicians, so as to improve innovation capabilities. 4.2. Establish Good Relations with The Government In the process of encouraging the third distribution, the government will inevitably use policy attraction, resource allocation and other methods to guide and encourage the development of public welfare undertakings. That is to say, according to the resource dependence theory, the resources needed for enterprise development are more from external resource holders. When the development mode of the third distribution becomes the connection point of the relationship between government and enterprise, then there is a motive for charitable public welfare to obtain political resources. The acquisition of political resources is a complementary resource of the enterprise's internal R&D investment, which can promote enterprise innovation [23]. Enterprises should have the courage to assume social responsibilities, pay attention to the interests and needs of the people's livelihood, ease the financial pressure of the government, obtain the government's biased resource allocation and the public's support and recognition, and then obtain resource advantages and information advantages to promote innovative development. In terms of administrative efficiency, the government streamlined administrative approval procedures, reduced excessive intervention of government departments in the 150 market economy, and stimulated market vitality and social creativity. Enterprises should seize the opportunity to optimize the relationship with the government, so as to improve the timeliness of innovation activities and the efficiency of obtaining financing, stimulate their own innovation motivation, promote the improvement of the "quality" and "quantity" of R&D, and improve innovation capability. 4.3. Strengthen Self-discipline of Enterprises and Abide By Laws And Regulations With the development of the third distribution, the corresponding supporting laws have been gradually improved, which makes charitable undertakings more standardized and standardized. First of all, enterprises should strictly abide by the constantly improving company law, protect the rights and interests of stakeholders, and actively assume social responsibility, so as to improve the legitimacy of stakeholders, obtain their attention, optimize corporate social capital, and obtain scarce innovation resources. Secondly, enterprises should pay more attention to intellectual property. The improvement of intellectual property awareness is conducive to reducing the risk of enterprise innovation and improving the willingness to innovate. Finally, enterprises should abide by the labor protection law, enhance the protection of human resources, improve the sense of security of technical innovation personnel, enable high-tech personnel to serve the enterprise in an all-round way, and improve the innovation ability of enterprises. 4.4. Carry Forward the Spirit of Charity and Focus on Long-term Value On the one hand, Chinese traditional culture contains a lot of ideas of "the journey of the great road, and the world is public", which has laid the foundation for the development of the third distribution in China. We will vigorously promote the traditional culture of charity and public welfare, make full use of Chinese ideas to address the income gap and relative poverty, and explore the socialist charity culture with Chinese characteristics. On the other hand, the spirit of charity is also the core content of socialist values, and the spirit of dedication is an important part of our civic moral education. The development of the third distribution is based on China's traditional excellent culture and socialist core values. The pursuit of a good ecological environment and the sustainable and eternal survival and development of enterprises is the fundamental goal and core value of corporate ethics. This pursuit places the creation of long-term environmental value, social value and economic value more important than the simple pursuit of short-term profits, which is beyond the immediate interests of reality [21]. He objectively requires enterprises to constantly innovate, meet the needs of consumption and society, and promote social development. Therefore, the good social atmosphere created by charity culture and the pursuit of enterprise's own value make enterprises pay more attention to social factors and long-term development, thus placing enterprise innovation at the core of development. 5. Conclusion From the perspective of the third distribution, this paper analyzes the development status of the third distribution in China and the opportunities brought by the third distribution to the improvement of enterprises' innovation capability, and proposes the corresponding path to enhance innovation capability based on a series of analysis results. The development of the third distribution has brought new opportunities and challenges to the whole society. Enterprises should combine their own development advantages, use market, government, law, social ethics and other factors to provide innovative impetus and advantages for their own development, and promote sustainable development of enterprises. Acknowledgment Anhui University of Finance and Economics Graduate Research Innovation Fund Project “Research on the Mechanism and Effect of the Third Distribution on Enterprise Innovation” (ACYC2021483) References [1] Song Shiming. On the personality of Chinese style governance modernization [J]. Journal of the Central Party School of the Communist Party of China (National School of Administration) 2022.015. [2] Sun Hao, Mao Zhonggen. Evolution and Policy Orientation of Chinese Residents' Consumption [J]. Social Sciences. 2020. 008. [3] Qiu Zijian. The Third Distribution: Predicament, Improvement and Realization -- Reconstruction Based on Corporate Social Responsibility [J/OL]. 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