The Study Of The Effect Of R&D Investment In The Wan-jiang City Belt

In the knowledge era, it becomes a trend that enterprise production changes fromlabor-intensive to capital-intensive and technology intensive. The development of science andthe innovation of technology play a very vital role on the enterprises’ production and countries’long-term development. It is widely acknowledged that who masters new technology, whichwould hold the initiative on the market. In1990s, the IT revolution had shown that science andtechnology are the primary productive forces, because the technology innovation can createeconomic growth point and facilitate the development of the entire economy. Science andtechnology innovation not only affects the high-tech industry but also the manufacturingenterprise. In order to cope with the increasing pressure of competition, the enterprises pay moreattention to the research and development activities to improving the competiveness. Wan-jiangcity belt, as an emerging economic zone with many manufacturing and technology companies init, has to face the fact that how to combine science and technology innovation with local laborforce, natural resources and regional advantage to improve the efficiency of enterprises for thewhole Anhui province. What is the output of the investment of R&D in the Wan-jiang city belt? Towhat extent does the R&D investment improve the manufacturing efficiency? The problems willbe researched in this paper.In order to study the effect of R&D investment in the Wan-jiang city belt, this paper takesthe data of Anhui province’s listed companies as a sample (using the Anhui province’s listedcompany data can narrow the geographical, wages, resources differences, so we can get moreaccurate prediction the effect of Wan-jiang belt of R&D investment), using the mixed regressionmodel and the panel model to research R&D investment and corporate earnings level, and therelationship between R&D input and the companies’ Tobin-Q value influence. The paper gets theresults that the research and development activity has a positive correlation with the companies’earning power and Tobin-Q value.