Technology R&D Investment’s Influence On The Enterprise Value Promotion

In reality, the strength of technology research and development plays animportant role in enterprise value and competitive advantage. And automationinstrument industry in China services to various industries, the main business is inindustry field. Automation instrument is the foundation of modern informationtechnology, the instrument measure information of object and connect through certainagreement passed to a unit, after dealing with the information, then feed back to theautomation instrument for performing specific actions, its high-tech content decidesthat it is must ongoing R&D in order to maintain the competitiveness of the products,therefore, taking an automated instrument enterprise for example, the relations of thetechnology R&D and enterprise value, which is of great significance.The article adopts the method of case study. Main research question is theenterprise technology R&D spending if there is a certain relation with enterprise valuegrowth. Paper main content is divided into six parts. The first chapter the introduction,explains the research background and research problems and significance. The secondchapter is literature review, presents and comments the existing research situation onR&D and enterprise value. The third chapter is the case description. The fourthchapter is case analysis, this chapter is the core of the thesis, starting from thecharacteristics of automation instrument industry in China, analyzing by the detailShanghai automation instrumentation co. which is representative in automationinstrument of our country, while introducing China’s automation instrument marketcapacity and market competition; Describe the technology R&D and enterprise valueof the sample enterprises, and made analysis on this basis. The fifth chapter on thebasis of the fourth chapter has made the further analysis about the influence factors of R&D spending, from the characteristics of automation instrument industry, externalmacro environment, internal resources, the present development situation and outlook,try to use a variety of means such as Michael Porter s Five Forces Model and PESTanalysis, analysis the influence factors of enterprise’s R&D investment and enterprisevalue on our country’s automation instrument enterprise. Finally is conclusion, putsforward Suggestions on R&D and enlightenment on the case. Research suggests thatthe market reaction to R&D investment is positive, but in a certain extent, R&Dspending increased financial burden, and frequently R&D activities in the second yearor third year bring value to company.