Research On The Influential Factors Of Enterprise R&D Inputs Based On The Life Cycle

Since China has become a member of World Trade Organization, Chinese enterpriseshave competed with foreign counterparts in the global background. The competition betweenenterprises have become fiercest ever before, inducing that innovation ability has become asubstantial guarantee for an enterprise and even a country to maintain its global status.Scientific statistics in recent years also illustrate that R&D activities are seriously taken fromenterprises to the whole country. What has become a consensus of enterprises is, thedevelopment of an enterprise calls for constant breakthrough of itself and innovations, whichneed to be funded. Although many investors and managers have realized the importance ofR&D input, the enterprises are confined by their structure. Thus, changing with externalenvironment in accordance with enterprises’ characteristics and scientifically making andtimely changing R&D strategies become impossible. Many scholars have analyzed theelements impacting on R&D input in different frontiers with differing views, and haveachieved certain results. However, most researches focus on a certain element and researcheson differing combinations of elements are rare. This thesis initiates with the view of enterpriselife cycle, and thus analyzes and explores the main elements that influence R&D input in adynamic setting, all of which are of great practical meaning.This thesis is divided into five chapters. The first chapter is the introduction, which setsthe research background and significance, the train of thought and research methods, andpresents the research content and framework. The second section presents related theories andmainly introduces enterprise life cycle, technical innovation theory and principal-agent theory.The third part, the normative analysis, initiates with the elements impacting on R&D inputwith theoretical analysis, then analyze the same matters in different periods of life cycle.Simultaneously, research assumptions are raised for both analyses. Lastly, the concept modelconcerning the elements concerning R&D input is gained based on the two analyses. Thefourth part is about the empirical research, which demonstrated the sample choice, variantsdesign and model built-up. Then the statistics are empirically tested through descriptive statistics, correlation analysis and multiple regression analysis. The last part, researchconclusions and extensions, comes to the conclusion of the thesis based on the theoreticalanalysis and empirical test results. Then this part raises advice on improving R&D inputsaccording to the conclusions and describes the limitations of the thesis.Through the research above, this thesis comes to the following conclusions:(1) thequoted companies in manufacturing industry emphasize more and more on R&D activities,but the overall level of R&D input intensity is still low.(2) The enterprise scale has a positivecorrelation with R&D input and, to be specific, a U relationship. But it has no correlation withthe level of R&D input intensity.(3) The capital structure has significant influence on R&Dactivities and the intensity of R&D input.(4) Equity structure has a significant effect on R&Dinput but not on the intensity of it.(5) In the management structure，board structure has anobvious effect on R&D input while managers structure has a significant effect on R&D inputintensity.(6) Every stage of enterprise life cycle is a unique combination of enterprisecharacteristics. In different periods of enterprise life cycle, the impacts made by variouselements are obviously different. Furthermore，this study found that the impacts made by thecapital structure and management structure significantly enhanced in recession，which isdifferent from previous studies.(7) High technology industry enterprises have higher R&Dinput and R&D input intensity.In order to uplift the R&D input, according to the research results of the elementsimpacting on R&D input in the view of enterprise life cycle, the following pieces of adviceare raised: Firstly, an enterprise should better enterprise structure, consider seriously thefinancing and management structure to conduct reasonable R&D input decisions. Secondly,full consideration to the life cycle stage of the enterprise should be given when an enterpriseanalyzes and makes decisions on R&D input. Thirdly, an enterprise should take full advantageof the industry and establish cooperation relationship with each other to achieve mutualbenefits.