| Lack of private enterprise’s R&D intensity is the problem of China’s economic development. Compared with foreign companies, China private enterprises generally lack enthusiasm for R&D, which result in the lack of scientific and technological content of its products. This fact not only seriously affects the international competitiveness of Chinese exports, but also drags the process of China’s economic transformation. For the lack of private enterprise R&D intensity, the fundamental reason is the private entrepreneurs’ suspicion for the development prospects of R&D, and the complaint about the inadequate protection of intellectual property rights. In China, because of the special national conditions, another reason of insufficient R&D of private enterprise may be external--the social capital.Social capital is a kind of special ability of enterprise, which can obtain specific information resource from society. In China, the social capital of private enterprise bases on the social activities of entrepreneur. The function of social capital for R&D includes the provision of information and protection of intellectual property rights. But does social capital of an enterprise indeed boost its R&D? This is the topic of this paper to study.This paper measures the social capital of Chinese private enterprise, and divides it into three parts:political relationship (PR), association relationship (AR) and bank relationship (BR). And then, this paper studies the relevance of these3factors with the intensity of R&D by evidence. The important conclusions are as follows:(1)There is a negative correlation between R&D and PR of China private enterprise. For the reason, this paper holds that the PR of China private enterprise plays a role in the alternative for R&D, which can helps a company break the barriers to entry in market. In addition of the uncertain prospects of R&D, China private enterprise intends to contain PR instead of R&D, as for market strategy. (2)AR of China private enterprise is significantly positive to R&D. This paper believes that it is because the PR of China private enterprise provides more market information and technical information, which reduces the difficulty of R&D, and gives more confidence to companies about R&D.(3)BR of China private enterprise is significantly negative to R&D. This result may be an indirect correlation instead of direct impact. As this paper hold, more BR in a company may mean its terrible financial condition. As to China private enterprise, cash shortage makes the restraint of R&D. Although more BR may help a company obtain more loans, the intensity of R&D is negative to bank relationship of China private enterprise.These conclusions help us comprehend the theory more in-depth about the effect of social capital, as well as the intention of Chinese private enterprises’ pursuit for social capital. Besides, these conclusions also prove that R&D in a private enterprise is not the first choice, especially for breaking the barriers to entry in market. So, when ponder how to encourage private enterprise to put more focus on R&D, government should pay more attention to these field:(1) Strengthen the protection of intellectual property rights. Worries about their intellectual property rights will decrease enterprises’enthusiasm about R&D. It is because patents-the results of R&D may be imitated by the competitors. So why increase the intensity of R&D when they cannot occupy its profit entirely? Strengthen the protection for patents may help build China private enterprise’s faith.(2) Found more organizations or associations in the market for industries. Associations can provide more information to its members. This information can be technical information, which can be the resources for R&D, or market information, which guides enterprises carry on more valuable R&D projects. Both of this information can boost the intensity of R&D.(3) Provide more financial support, especially about the loans. China private enterprises meet more difficulties than the state-owned enterprises when looking for bank loans. It is because of the special national conditions of China. Besides, private enterprises also cannot match the requirements or the credit policy proposed by banks. So government must put favorable policy on private enterprises, for their loans. Cash shortage makes the restraint of R&D in private enterprise, so the intensity of R&D may be increased when they have more cash flow.Overall, this paper gives an external perspective for the company R&D research. This is a new kind of attempt, which combines social capital with the company activities, and finds out their correlation by evidence. Hope the conclusions of this paper can make people put more focus on the impact of social capital on R&D intensity. |
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