Research On Relations Of R&D Investment, Technology Innovation Output And Profitability

At present, China’s economy is facing the problem of restructuring, the growth of which needs a change from depending on cornerstone investment, high pollution, high energy consumption and low efficiency to focusing on innovation and efficiency improvement. In this situation, it’s of great significance to explore the relations among R&D investment, technical innovation output and profitability of enterprises, for example, IT companies. Although some scholars have relevant suties on the performance of the corporate R&D investment, there are few literature putting the relations of R&D investment, technical innovation output and profitability together. Moreover, The IT industry is the focal supporting industry during our country’s development of high-tech industry. Thus, studying on IT enterprises could enhance understanding and knowledge of technology innovation. Moreover, along with the promulgation of the new accounting standards, more disclosure of enterprises’relevant data also provides convenience for this study. Therfore, This paper builds hypothesis and research design on the basis of literature combing and theoretical exposition, and couducts empirical research on the data of65listed IT enterprise from2009to2011.First, before empirical research, this paper defines concepts of technology innovation, R&D activities and corporate performance, summarizing technology innovation theory and research status about the relations among investment in research and development, technical innovation output and profitability. Then, the paper selects appropriate variables of R&D investment, technical innovation output and profitability, and establish corresponding hypothesis and model. Finally, this paper test and verify the hypothesis through descriptive statistics and multivariate regression analysis.The conclusions of this article are as follows:The overall R&D investment of listed IT companies in our country have reached a high competitive level of5%, while the intensity of which have large differences between enterprises. The intensity of R&D investment is positively correlated with per capita of new patent applications and technology assets ratio, which are two indicators on behalf of technology innovation output. The strength of R&D stuff is negatively correlated with per capita of new patent applications and technology assets ratio, which are two indicators on behalf of technology innovation output. The intensity of R&D investment is positively correlated with the main business profit margins and earnings per share, which are two indicators on behalf of the profitability. The strength of R&D stuff is weakly positively correlated with the main business profit margins, and is negatively correlated with earnings per share, both of which haven’t pass the hypothesis test. Per capita amount of new patent applications is positively correlated with the main business profit margins and earnings per share, which are two indicators on behalf of the profitability. Technology assets is positively correlated with the main business profit margins, while which haven’t pass the hypothesis test. Technology assets is also positively correlated with earnings per share, which narrowly pass the hypothesis test.Based on the results of empirical research, this paper puts forward corresponding proposals respectively from the macro level and the corporate level for the promotion of enterprises’technology innovation and R&D activities.