An Empirical Study On The Impact Of General Equipment Manufacturing Industry Enterprises R & D Investment On Financial Performance

With the globalization of technological innovation and the rise of "German Industry 4.0" and "Made in China 2025", more and more enterprises pay their attention to R&D input in order to increase profitability and core competence. This article start from whether R&D expense can increase enterprises’ financial performance significantly, based on general equipment manufacturing industry, which is being developed prioritized in "Made in China 2025". Statistics are collected from 2010 to 2014 which are related to R&D input and financial performance. Empirical analyses are used and multiple linear regression model for input and output are set for empirical test on the impact of R&D investment on financial performance. Input indicators include R&D fees and R&D employees and output indicators are profitability and development capacity. Finally, conclusions are that R&D investment have significant relationship with profitability current and three years delay, and R&D investment do not have observable relationship with development capacity current and three years delay. At last, rationality of empirical results are analyzed and suggestions are put forward.