Research On Internal Determinants Of Firm R&D Investment

In the era of knowledge economy, competitions among countries are the economic competition and technological competition. Compared with development countries, chain’s In recent years, our government began to increase investment in technological innovation, and strive to build China into an innovative country in2020. However, the enthusiasm of the enterprises in technological innovation activities lags far behind countries. In this background, to study the factors affecting corporate R&D investment and to explore how to enhance R&D investment scale have great practical significances.The article attempts to explore the internal factors that affect R&D investment. The article proposes the hypothesis and set out the multiple linear regression model on the base of the analysis of R&D investment theory and summarizing the existing research results. The article selected electronic information industry companies for the study and using panel date to do empirical analysis. And the correlation analysis shows that the size of the board of directors, senior managers annual salary, firm size, sales revenue, number of patents, R&D personnel ratio, high quality of the proportion of employees and corporate R&D investment is positive. However, the role of ownership concentration on corporate R&D investment is not obvious. The regression analysis shows that the technical capacity factors on corporate R&D investment is the most important, followed by financial factors, and the decision-making factors on the impact of corporate R&D investment are minimum. This shows that R&D investment is not determined by the long-term interests of shareholders alone, or by corporate material basis and technological capabilities. This conclusion is to determine the key factors that affect R&D investment. It is helpful for enterprises to increase R&D input by improving these factors.