Basing on the survey data of NGEs, the study analyzes the situation of the transformation and upgrading of NGEs and its effect on the NGEs' competency.It is found that, from the perspective of industry change, most of NGEs have transformed and upgraded in different degrees.Generally, about 45% of NGEs have transformed and upgraded.According to the empirical study, the transformation and upgrading is positively related to the productivity of the enterprise, but with low significance level, and the management equity incentive is of great significance to the improvement of competency in the process of transformation and upgrading. <<