Motivating innovation is very important in stated-owned enterprise in China. From the perspective of wage growth and wage level，this report studies the mechanism of executives，employee wage distribution affecting innovation by comparing the whole industry and high-tech listed companies in 2012-2018. The conclusions are as follows：the wage level and the internal wage gaps of the listed companies are significantly positively related to the innovation output；the increase of the employee’s wage has a positive effect on the R&D intensity of the firms，and the improvement of the R&D intensity is beneficial to the improvement of the total number of patents，and the innovation output has a positive effect on the long-term profitability of the firms. The following policy implications are derived：to implement a distribution policy for firms that promotes innovation through sustained wage growth；to promote innovation，the wage levels of state-owned enterprise executives and employees should remain sufficiently competitive and implement medium- and long-term incentives；to implement a mechanism for determining wages linked to innovation outputs such as total number of patents or inventions for high-tech enterprises；to further introduce policies and measures to promote venture capital investment and capital market support for innovation-motivating.