Financing Model And SMEs’ R&D Investment Under Financing Constraints

Innovation is an important footstone in national development, and also is the foundation for the future development of China.At present, improving innovation ability has become an important way to cope with competition between countries.In recent years, China constantly increase investment in research and development (R&D) funding intensity.According to the Chinese science and technology statistics, R&D funds of enterprises’ has accounted for 77% of national R&D funds.As small and medium-sized enterprises(SMEs) provides most of the patents for invention, innovation and new product development in China, they are the most innovative enterprise group in our country, so the study of SMEs’ innovation becomes very important.According to the endogenous growth model and Schumpeter’s theory of innovation, research and development (r&d) investment is one of the key factors for innovation. So exploring factors which affect SMES’ r&d investment,is matters.Among them, the factors of financing is one of the key factors which influence SMEs’r&d investment decisions.Specifically, this article is made up of several parts.The first part is introduction, presents the background, meaning, purpose and innovation of this paper.The second part is concepts and review of literatures. The third part is the theoretical analysis.This chapter summarizes the reasonable theories that support hypothesis.The fourth part is the analysis of current situation of SMEs in our country. The fifth part is the design of empirical analysis, including sample selection, data sources, model selection, etc.The sixth is empirical analysis,which is the most important chapter in this paper. This chapter take empirical analysis in the overall sample and grouping sample.The seventh part is the last chapter of this paper, including the summary of conclusions, policy suggestions, the lack of this paper and prospect.In this paper, the research subject are how financing model impact on r&d investment in SMEs on conditon of financing constraints.So,this paper use SMEs board-listed companies as sample.Theoretical and empirical analysis come to several founds. The first one is, SMEs is suffering common r&d financing constraints.The second one is, internal cash flow, equity financing and debt financing played a positive role in support for SMEs’r&d funds. The third one is,most of SMEs use cash management to smooth R&D. The forth one is, growth enterprise suffering more serious financing constraint, and choose to use a more positive cash management to smooth R&D.Innovations of this paper including research perspective, new data which is updated to December 31,2014. Also used the system GMM estimation method, for relieving the endogenous problem of the model.