Research On Relationship Of R&D Investment, Technology Innovation Performance And Profitability On Listed Military Enterprise

Military enterprises are members of the national defense construction and economic construction in our country, who undertake the responsibility for providing all kinds of weapons and equipment and civilian goods for the people’s army and the people’s militia. Technology innovation is the motive force for military enterprises to survive, and if the military enterprises lose the ability to make constant technological innovation, it will bring huge and incalculable profit losses to the military enterprise and even the nationality. So it’s particularly important for the military enterprises to concentrate on the impacts of R&D Investment, Technology Innovation Performance and Profitability.In this paper, use literature research and empirical analysis methods to discuss the relationships of R&D Investment, Technology Innovation Performance and Profitability. Through literature review and related basic theory research, we put forward relevant hypotheses and build regression model, then we use 52 listed military enterprises’ data in 2010-2014 time series to test and verify the hypotheses through descriptive statistics and multivariate regression analysis. We can find the military enterprises’ problems in Technology innovation, and put forward some guidance according to problems.The conclusions of this paper are as follows: R&D Personnel Investment level and R&D Capital Investment level are having a gradually rising trend, R&D Capital Investment level is relatively lower, but that maybe associated with statistical bias; R&D Investment has a significant positive correlation with Technology Innovation Performance, R&D Personnel Investment makes more contribution to Technology Innovation Performance than R&D Capital Investment does. To some extent, that means Military enterprises have R&D Investment Transformation Ability, but Military enterprises have to continuously improve the level of this ability; Technology Innovation Performance has a significant positive correlation with Profitability, but Technical Assets have no significant positive correlation with Main Operating Margins, it shows that Military enterprises have certain ability of Technology Achievements Transformation; R&D Personnel Investment has a significant positive correlation with Profitability, but R&D Capital Investment doesn’t have a significant positive correlation with Profitability.The conclusions of this paper show that Military enterprises have some problems in the R&D activities, such as Military enterprises’ R&D Capital Investment level is a little lower, R&D Investment Transformation Ability and Technology Achievements Transformation Ability need to be improved. According to these problems, we put forward three suggestions for the Military enterprises and Governments: Military enterprises should increase R&D Capital Investment and set up technical innovation consciousness; Military enterprises should attach great importance to R&D core talents cultivation and improve R&D Investment Transformation Ability; Governments should pay attention to the late push for market application and accelerate Technology Achievements Transformation speed.