A Study On R & D Investment And Performance Of Listed IT Corporations In China

Technological innovation is based on the premise of R&D activity, and R&D activity is the guarantee of core competitiveness of corporations.ln the furious market competition, most of oversea corporations have already put R&D activity into the important corporation developmental strategy. Today, our society is lead by high-tech industry, such as computers,internet, and so on.So the performance of R&D activity in IT industry will seriously affect the competition ability of our country in the global market directly.The paper, based on the Agent of Production Theory, Input-Output Theory, Technological Innovation Theory, analyzes the importance of R&D investment and brings forword the performance evaluation system of IT corporations.The author analyzes the relationship between R&D investment and performance of listed IT corporations by using observations of our listed IT industry between the years 2007-2010 in stock market of Shanghai and Shenzhen, adopting the method of empirical study, utilizing the multi-dimensional linear regression model and the amendatory Cobb-Douglas production function,choosing the index such as R&D investment intensity and technological worker investment intensity as explanatory variables, sales income,sales profit,ROE,the increase rate of sales income,profit and net capital as explained variables.The main conclusion in this paper are as follows:the ability of R&D investment intensity of listed IT corporations in China can't catch up with 5%, and usually affected by corporation size; the R&D investment generally has a positive correlation with gain performance of listed IT corporations, no obvious relation with growth performance; and the R&D investment has lag and accumulation result, will affect the performance after two years. Otherwise, the paper give the support that IT corporations in China should transfer into technology intensive from labor and capital intensive.The findings of this paper, not only for our listed corporations, but also for our non-listed corporations, will promote them to pay more attention to R&D activity, increase R&D investment. The thesis has a positive effect to strength our IT industry's competition in global market.