Analysis Of R&D Input And Benefit In China’s High-end Equipment Manufacturing Enterprises

Nowadays, China’s economy is at a crucial point for transforming and upgrading,while the high-end equipment manufacturing industry is the most important one inthose transforming and upgrading industry. We can learn from the experience ofdeveloped countries that industrial upgrading is inseparable from the independentresearch, because this kind of research can raise the technological level. In recentyears, high-end equipment manufacturing enterprises in China are starting to attachimportance to the investment in R&D, but these enterprises are still in a stage called"big enough, not strong enough”, the independent technology is laced, and the keycomponents is rely on imports. On the other hand, in theory, the R&D investment andthe interest of enterprises were proved positively correlated. The R&D will form theenterprises technological capital, and technological capital is a kind of caption comesafter captions like human resource, money, and production tools, the technologicalcapital will be the core advantages of the development of high-end equipmentmanufacturing enterprises. Therefore, in this paper, we are trying to find out theproblems in the R&D input of China’s high-end equipment manufacturing industry,and then give our advices from financial prospect. To achieve this goal, we use thetheories of technological capital and R&D input; investigate the relationship betweenR&D input and benefits in four enterprises, which are selected from the listedhigh-end equipment manufacturing enterprises of China.We select4case enterprises in the high-end equipment manufacturing industry, andstudy their R&D input and its benefits, used the Chinese and foreign scholars’theoretical and empirical research. The analysis is based on the data reflectingenterprises’ R&D and its benefits, the attitude and the policy of the enterprise aboutR&D etc. After the study we come to a conclusion that China’s high-end equipmentmanufacturing enterprises are at a low R&D intensity, and the financial management’ssupport on R&D is not perfect. In addition, the government’ ignorance of themanagement on its investment fund and the poor IPR protection systems also reducethe R&D efficiency in high-end equipment manufacturing enterprises in China.High-end equipment manufacturing enterprises should rely on the core advantagesbased on the element capital theory to carry out the production and operatingactivities, at the same time, improve the internal and external environment of theenterprises’ R&D. This paper has five parts. The first part is a introduction including background ofthesis-choosing, the content of the research, significance and research approaches.The second part gives the review about the research of R&D input and benefits, boththeoretical and empirical; The third part is the analysis of case enterprises’background and environment, giving the basic view of the sample enterprises; Thefourth part analyses sample enterprises’ R&D input and its benefit; forms theevaluation index of the R&D input and benefits. The fifth part is the enlightenmentand the suggestion. According to the case analysis results, we suggest that China’shigh-end equipment manufacturing enterprises should establish and implementtechnical capital financial management mode. In the meanwhile, highlight thegovernment’s participation in the progress of development of the high-end equipmentmanufacturing industry.This paper didn’t analyze all the enterprises in China’s high-end equipmentmanufacturing industry, but the microscopic analysis of case enterprises can integratewith the enterprises’ actual conditions. In this paper, to counter the industry’scondition, we put forward that the enterprises should pay attention to establish thefinancial management mode from R&D input to its benefits.