A Research Into The Impact Of Technology Capital Input On Enterprise Growth

Enterprise growth has become the focus of the academic community and the business community discussion. But there is divergence about the fundamental motivation of growth. Reality shows that SMEs have become an important part in our national economy, its steady and healthy growth related both to national economy's quantity growth and quality improvement. In theory, the elements capital hypothesis points out technology capital is a core capital of the firm, and it is closely related to enterprise growth. Especially to the high-tech companies listed on the SME board, the technology capital is of great significance.This article focuses on the impact the technology capital input brings about to the SME growth, as well as the lag effect of technology capital investment based on the technology capital attributes. This research bases on reviewing the theories related to the elements capital hypothesis. Its main body uses empirical methods. This research selects all the 39 companies listed at the beginning of the SME board setting up in 2004 as objects. After exclusion the data missing ones, it makes regression analysis for the rest 30 sample companies'panel data from 2004 to 2007. Empirical results show that technology capital input and enterprise growth are in positive correlation. And there is a lag of technology capital input effect.This article is divided into five parts. The first part is the introduction about the background and the significance of the issue. The second part is about review of literature and theory. There are two parts of the theory review, theories related to technology capital and to enterprise growth. Furthermore, theories related to technology capital include elements capital hypothesis and economic theories about technology. The third part is about research method and research design. The forth part is about data organization, empirical results and analysis. These two parts is the main content of this article. Multiple regression models are based on the theoretical analysis. It use statistics and econometrics method to collect and process data to access to this article's result about the impact the technology capital brings to the enterprise growth. During the course of the research, considering current difficulties in accurately quantifying technology capital overall value, this article takes the point of a realistic view, and chooses technology-related incremental investment in the enterprise as alternative variables for the current technology capital inputs. This study based on two kinds of regression models separately from the view of enterprise scale growth and efficiency growth. The fifth part is inspiration and suggestions. According to the empirical results, it suggests that SME should increase technology capital input in order to promote its growth, and emphasize the importance of the government subsidies policy for the SME.During the writing process, the author feels more and more deeply that the technology capital is becoming the decisive factor for the enterprise development and growth. However, the researches on technology capital are far from adequate. Therefore, it is a brand-new topic which is full of challenges. It needs more thorough and overall researches. The possible initial ideas of this thesis are: (1) Discuss the authenticity of the position about technology capital could promote the enterprise growth from the view of economic theory and the financial management theory. (2) It verifies the conclusions of elements capital hypothesis about technology capital relying on statistical and econometric method and using large sample multiple regression. Academic research on techniques capital should selected high-tech enterprises a sample, so that research results could be more in line with the research expectation.