The Impact Of Internal,External R&D Investment And Their Interaction On Enterprise's Innovation Performance

With the implementation of the national innovation-driven strategy,China has increased investment in R&D to enhance the ability to innovate.The situation of insufficient R&D investment in the past has been greatly improved and the total R&D expenditure of China in 2015 has ranked second in the world.However,China's global innovation index has always been out of the top 20 in the word.It indicates the hoisting speed of the innovation capacity is still very slow and the issues of low efficiency still exist.As an important subject of innovation,enterprises play an important role in implementating the innovation-driven strategy and strengthening.the national innovation ability.With the increasingly close ties of the social departments,the enterprise not only rely on internal R&D activities to achieve innovation,but also seek innovation cooperation more actively to improve the innovation ability by conducting R&D activities with research institutions,colleges,universities,other enterprises and units.Accordingly,enterprises'R&D investment is divided into external and internal parts.By increasing investment in internal and external R&D,the enterprises take a comprehensive advantage of itself and other units to enhance the innovation performance.Then do the internal and external R&D investment have really played a significant role in enhancing the innovation performance of enterprises?Whether there is a complementary relationship between the two kinds of R&D investment?Does the interaction between two R&D activities enhance the enterprises' innovation abilities effectively?To study these issues is of great significance to help Chinese enterprises to optimize the allocation of R&D resources and improve the innovation performance.The paper firstly analyzes the status of the internal,external R&D investment and innovation performance of large and medium-sized industrial enterprises in China.In order to further study the influence of internal,external R&D investment and their interaction on innovation performance,the paper makes a detailed empirical analysis based on the panel data of large and medium-sized industrial enterprises in China between 2005 and 2015.In the paper,the number of patent and invention patent applications is selected as the measure of enterprise innovation performance.Considering that the explained variable is a a count variable and overly dispersed,the panel fixed effect negative binomial regression model is used for empirical test.Through empirical research the paper studies the effect of internal,external R&D investment and their interaction on the innovation performance of the enterprise,and discusses the influence of internal and external R&D investment on the innovation performance of enterprises from industries of different techinque level.A number of robustness test results confirm that the conclusion of the paper has a certain robustness.The paper finds the following conclusions.Firstly,the internal R&D investment has a significant positive effect on the innovation performance of the enterprise,while the external R&D investment has a negative impact on the innovation performance of the enterprise.Secondly,the interaction of internal and external R&D investment has a significant positive impact on the innovation performance of enterprises,and there is a complementary relationship between the two kinds of R&D investment.Thirdly,there are industry differences in the impact of internal and external R&D investment on the innovation performance of enterprises.In the industry with high techinque level,the internal R&D investment of the enterprises has a stronger effect on the innovation performance,and external R&D has a smaller impact on the innovation performance.Fourthly,the scale of enterprises and economic performance have a significant positive effect on the innovation performance of enterprises.State-owned property rights and foreign trade have suppressed the innovation performance of enterprises.