An Empirical Study Of R & D Impact On The Business Growth

In the era of knowledge and economy, challenges and opportunities coexist. Theenterprises must have core competence that is difficult to imitate want to remaininvincible. However, as a driving force for technological innovation, R&Dinvestment plays an important role in enhancing the competitiveness of enterprises.In recent years, although lots of enterprises increase the total R&D investment,compared with some developed countries, they are still lack of R&D investment.Lower R&D intensity has become a bottleneck in the development of Chineseenterprises, especially in the industry with a high level of technology. At present,China’s traditional manufacturing industries have increased R&D investment inorder to enhance their level of innovation. Thurs, studying the effect of R&Dinvestment on the enterprises which have different technology is of greatsignificance.After describing the relationship between R&D investment and firm growth, weintroduce the financial indicator—new product sales revenue(reflecting the Newproduct development capability of the corporate and belonging to the result of thescientific and technological innovation) and the non-financial indicator—number ofpatent applications, to study the effect of R&D investment on firm growth byanalyzing the scientific research activities of the pharmaceutical and food industries(using the2006-2011datas).Firstly we use EXCEL software to have a preliminary analysis of sample dataand then with SPSS20.0software we have correlation analysis and regressionanalysis. We draw to the conclusions as follows: First, R&D investment is obviouslyinsufficient to China’s medium-sized food industry and pharmaceutical industry. Andthe importance of R&D investment is not enough and the overall level is still in alower level. Secondly, for the two industries, there is a lag effect between R&Dintensity and the development of enterprises. That is to say, it shows negativecorrelation between R&D intensity and enterprise revenue growth rate, asset growth rate and profit growth rate. And there is a positive correlation between lagged oneand two years of R&D intensity and enterprise revenue growth rate, asset growthrate and profit growth rate, and the relationship has declined. Compared to the twoindustries, food industry has shown a greater lag. Thirdly, R&D capital from thegovernment has an opposite effect on the two industries. In other words, governmentcapital reduces food industry’s competition ability, but strengthens thepharmaceutical industry’s competition ability. For the enterprise capital, the capitalof the food industry more focused on product innovation, and the pharmaceuticalcapital greater influence on technology innovation.