Abstract: Enterprise innovation activity is embedded in the network of cross-ownership, which is influenced by cross-ownership's advantages of governance and resources, and collusion. Based on the data of A-share listed companies from 2007 to 2019, this paper explores the relationship between cross-ownership and innovation input, and finds that cross-ownership is beneficial to enhancing enterprise innovation input, and the larger number of cross-owners, the more innovation input. The mechanism study shows that the resource governance advantage of cross-ownership significantly improves the level of enterprises risk-taking, which in turn increases the innovation input. The path study finds that the short-term compensation incentive is the main way for cross-ownership to influence the innovation input of enterprises. Furthermore, it is found that cross-ownership increases the innovation input and the innovation output, but not the innovation efficiency. This paper constructs a complete logic of the influence of cross-ownership on innovation input, which provides an explanation of cross-ownership' network connection for understanding enterprise innovation investment decision making. It sheds a light on how enterprises should explore and realize independent innovation in order to enhance their own value and promote high-quality development.

Key words: cross-ownership, innovation input, advantages of resources and governance, collusion motivation, enterprise risk-taking, compensation incentive