Independent Directors And R&D Input

In the era of knowledge economy, the enterprise’s technology innovation is anguarantee of enterprise ’s sustainable development.The importance of enterprise’s R&Dactivities has already won attention of not only the enterprise’s but also scholars’ andgovernment’s.As there is increasingly competitive, enterprises should pay more attention toR&D activities which In relation to its sustainable development. From the perspective of theresearch and development strength,there is a big gap between enterprise’and eligibilitycriteria.Independent directors，whose basic function is monitor function, can deal with theprincipal-agent problem from different position with the enterprise internal managementpersonnel.Besides，according to resource dependence theory, independent directors canenhance the team heterogeneity of the board of directors, broaden the vision of viewing andmake research and development decisions more reasonable.Therefore, this article researchsenterprise R&D input constraints from the perspective of independent directors.It hasimportant theoretical and realistic significance.The main work of this paper，is putting forward research focus，on the basis ofsummarizing current research of ndependent directors’ influence on R&D inputs,theindependent director system and the characteristics of R&D activities.Then，this article putsforward hypothesis about independent directors’characteristic and R&D activity.Next part thispaper collects the data of listed companies, China’s manufacturing industry for empiricaltesting.According to the analysis and regression test results presented in this paper, theresearch proposes conclusion and corresponding policy recommendations.The main conclusions of this paper can be summarized as the following:Firstly，this paper learns from the domestic and foreign researches on the relationshipbetween independent director and R&D input，makes analysis on the influence of independentdirectors on R&D input. The results show that salary incentive, independent director’s teamheterogeneity by the education level and age level has significant effect to R&D investment.Secondly， we make a more comprehensive description analysis on situation ofindependent director team and individual of the manufacturing enterprises in our country. Theresults showed that, although Chinese enterprises have generally introduces independent directors and pay attention to their education level,there are great need of improvement ofindependent director system in the selection mechanism, external incentive, internalcoordination.The process and conclusion of this article offers certain theoretical guidance andpractical experience to optimizing the independent director system, improving enterpriseR&D input.