Impacts Of Market Competition On Research Innovation Investment

With the GEM market continues to evolve and mature, the status of high-growth small and medium enterprises in China’s economic development is more important. It also has a huge contribution to the force in technological innovation. While for small and medium-sized enterprises, if they want to survive in the bad market environment, they must rely on continuous technological innovation. But this is the most lack of small and medium-sized enterprises. Influence factors of its r&d innovation is more. Market structure for survival environment fragile can be especially important for small and medium-sized enterprises. Enterprise is directly related to the strength of the market competition in the short term investment and long-term investment decisions. For the degree of market competition can affect corporate r&d innovation has been the attention of the relevant scholars, but still not form a consistent conclusion.This article first on the relationship between the enterprise innovation and market competition degree are analyzed in theory. The market competition degree effect on enterprise innovation is divided into three categories:Competitive inhibiting innovation, Competition driving innovation, a nonlinear relationship competition and innovation. At the same time combining the current situation of the development of small and medium-sized enterprises in our country:the different levels of competition in the industry and technology level difference is big. Degree of market competition for enterprise’s innovation activity there may be the influence of industry difference. Based on the above theoretical analysis Using GEM-listed companies from 2010 to 2012 as a research sample data, this paper analyzes the influence of market competition to enterprise research innovation. The result indicates:The gem overall market innovation investment and market competition degree is linear positive correlation. But in every industry, both show a different relationship. Significantly negative correlation between the two in manufacturing, the significant positive correlation in the manufacturing industry, an u-shaped in style entertainment and there is no significant linear or non-linear relationship between innovation and competition in the research industry. The relationships between the degree of market competition and research innovation show different in different industries. This result has practical significance for the appropriate strategic decisions of Innovative SMEs and the local conditions of technological innovation of government policies.