Life Cycle, R & D Investment And Corporate Performance

Research and development indicates the future of the corporation, and R & D investment is inexhaustible motive force for further developing of the company. Therefore, studying the influence of R & D investment on company performance has a significant realistic meaning. At different stages of a life circle of firm, it will grow and wither, and here comes the question:how the R & D investment affect the enterprise performance at different stages? For this, theorists have not yet given a clear answer.Based on the life cycle theory, this article explores the impacts of R & D investment on company performance at different stages of a life circle, using single-case method and taking manufacturing enterprises as the research object.The results show that the effect of R & D investment are different. In the growth and mature stage, R & D investment increases the corporate performance, while in a recession companies, R & D investment and corporate performance is irrelevant.ln conclusion, R & D investment will imrpove the performance only if the life circle of the company is considered. Conclusions of this paper have important theoretical and practical significance on developing the theory of the R & D investment and business performance, and promoting proper R & D investment.