Business Risks And Industry Innovation Environment For Enterprise R & D Investment

As globalization increasingly penetrating into the national economic system, themajor economies began to show the tendency of knowledge industrialization. The softpower of science and technology Competition become the new field of competition, topromote science and technology results at the volcanic eruptions-speed. The innovativeenterprises as the main deputies of micro high-tech research and development are themain targets of academic community in recent years. However, many domestic andforeign scholars focus on the relationships among corporate governance, corporateperformance and the macroeconomic environment, in order to explain a series of R&D investment phenomenon. But the results of these studies on the impact of R&Dinvestment i is not impressive enough. This article starts from the high-tech enterpriseinternal and external business environment, attempting to reveal the mechanism amongthe internal operating conditions, external industry environment and enterprise R&Dinvestment behavior.This paper analyzes the status quo of corporate R&D investment in China andthe emerging economies. Based on the review of the related theories, we selected153high-tech enterprises listed in the GEM2009and2010as a research objects, using theReport of the Board of Directors and the annual report disclosure about R&Dinvestment data. First of all, from the GEM business risk scatter plot distribution, weverify whether such theoretical reasoning inverted U-shaped relationship between R&D investments. And then build a model of the R&D investment, industry R&Dinvestment, science and technology subsidies to study the relationship between R&Dinvestment and industry environment. Finally, the establishment of R&D results, theaverage number of knowledge of the industry and their own R&D investment modelto study the relationship between R&D results and industry environment.The empirical results found: First, China’s high-tech GEM listed company’sbusiness risk and R&D investment take on the inverted U-shaped relationship.Second, the GEM corporate R&D investment, industry average R&D investmentand government subsidies have a significant positive correlation. We also found that R&D results, the average number of patents of the industry and their own R&Dinvestment intensity take on a significant positive correlation. Based on theconclusions of this study, we suggest enterprises should develop a long-term R&Dstrategy for matching business; broaden the source of technology research and development channels; improve the status quo of corporate finance, to create a fairenvironment for state-owned and private enterprises, protect the R&D patentsenvironment; increase policy guidance and incentives for high-tech enterprises.