Research On The Effect Of R&D Input On Enterprise Growth

In order to achieve rapid economic development of the central regions, to narrow the development gap between eastern, central and western regions and to promote coordinated development of the different regions, the strategy of "Rise of the Central Regions" came into being. The rise of the central regions needs the cooperation and the coordination of all social powers. Of course, enterprises, the most important subject of the market economy, must play their roles well. However, the development of the modern enterprises cannot do without innovation of science and technology, if enterprises don’t innovate, and they can hardly survive and develop in the fierce competition, if enterprises don’t innovate, and they can hardly escape the fate of extinction. The innovation of the enterprises cannot do without R&D input, because R&D input is the material basis and the guarantee of the innovative enterprises. One purpose of enterprise innovation is to improve its growth. Generally speaking, the development capacity of an enterprise is better, the profitability is stronger, the scale expansion is faster and the enterprise growth is better. As the key support innovative enterprises of the state, high-tech enterprises pay more attention to the innovation than general ones. Current academic researches on the effect of R&D input on enterprise growth of high-tech enterprises mainly focus at the national level, while the researches on the effect of R&D input on enterprise growth of high-tech enterprises in central regions are rarely involved and the comparative researches on the effect of R&D input on enterprise growth of high-tech enterprises between central regions and eastern regions are less. Therefore, this paper studies the effect of R&D input on enterprise growth of high-tech enterprises in central regions and comparing with eastern regions to find the different effects of R&D input on enterprise growth of high-tech enterprises between central and eastern regions.This paper chooses the relevant data of R&D input and enterprise growth from2009to2012of the59mature listed high-tech enterprises of the central regions which were established ten to fifteen years ago as the research objects, using the panel data, constructing empirical models by using econometric software Stata11.0, studying the effect of R&D input on enterprise growth of mature listed high-tech enterprises in central regions through the establishment of regression models, comparing with146mature listed high-tech enterprises in eastern regions and researching the effect of R&D input on enterprise growth of the mature listed high-tech enterprises in central regions on this basis.The empirical results show that, the positive effects of total R&D input amount on main business incomes, net profits and total assets of the mature listed high-tech enterprises in central regions are significant and the lag periods of positive effects are all one year. The positive effects of total R&D input amount on main business incomes, net profits and total assets of the mature listed high-tech enterprises in eastern regions are also significant but there is no hysteresis of positive effects. The degrees of the positive effects of total R&D input amount on main business incomes and total assets of the mature listed high-tech enterprises in central regions are lower than eastern regions, the degree of the positive effect of total R&D input amount on net profits is higher than eastern regions, the speeds of the positive effects of total R&D input amount on main business incomes, net profits and total assets are slower than eastern regions.Based on the above empirical analysis, this paper considers the causes of the different effects of R&D input on enterprise growth of mature listed high-tech enterprises between central and eastern regions are as following fours:First, the economic strength of high-tech enterprises in central regions is weaker than eastern regions; Second, human capital quantity and quality of high-tech enterprises in central regions were lower than eastern regions; Third, the competition of high-tech enterprises in central regions is less intense than eastern regions; Finally, the quantity and qualities of research institutions, universities and intermediary service organizations which high-tech enterprises in central regions can cooperate are lower than eastern regions.To improve the degrees and the speeds of positive effects of R&D input on enterprise growth of high-tech enterprises in central regions, enterprises should increase R&D input to ensure the continuity of R&D input, improve the quality and the loyalty of internal R&D personnel and attract outside high-quality R&D personnel to join, establish an independent R&D department of the enterprise and cooperate more with R&D institutions and universities, formulate and improve market competition strategy and take active part in market competition. Government should increase R&D activities budget, increase the support efforts to R&D activities of high-tech enterprises, improve relevant laws and regulations of high-tech enterprises, improve the motivation of high-tech enterprises to participate R&D activities, accurately locate itself functions in the service of high-tech enterprises’R&D activities.