A Study Of The Correlation Between R&D Input And Business Performance

There is a tight relationship among R&D activities, technological innovation andbusiness performance. In the context of our current requirements of the industrialrestructuring and upgrading, improve the capability of independent innovation, to studyR&D input and business performance from the enterprise level, is a significant guide toenterprise R&D strategy and government industrial policy.This paper first describes the overall situation of China’s R&D activities which werecompared with other countries. In the empirical, this paper selected the2008to2010yearsof R&D input data and related financial indicators from161listed companies ofInformation equipment and electronic industries in china’s stock market, which were thepublic disclosure of information, then established multiple regression model and PanelData Model for empirical tests. The results showed that: enterprises R&D input and mainbusiness income, main business profits, positive correlation; enterprise R&D intensity andgross margin, positive correlation, but no significant positive correlation with theenterprise Tobin Q. Lag one test also showed a similar result. Due to the number ofsamples, and economic fluctuations, there is no robust positive correlation between growthindicators of business performance and R&D input.At last, in accordance with the conclusions of the study, this paper gaverecommendations to enterprises and government, summed up the limitations of this article,and future research prospects were also proposed.