The Effect Of R&D Investment On Enterprise's Innovation Performance

With the promotion of the Innovation Driven Development Strategy and the Supply-side Reform,the central government has repeatedly stressed the need to focus on building a new type of entrepreneurship and innovation system ever since the 18 th National Congress.Innovation,is not only the driving force of employment growth,but also an important driving force to solve the problem of weak economic development and to promote long-term economic growth.At the same time,domestic enterprises are getting more and more active in carrying out innovative activities and increasing their R&D investment year by year,which exactly reflects a new mode of thinking—from cost-competitive to technology-innovative.Therefore,this paper is of great practical significance for it is based on the data of listed companies and it analyzes the effect and mechanism of R&D investment on enterprise's innovation ability and innovation performance.Through comparing enterprises with different ownerships,different industrial characteristics and different regional characteristics,and by using the fixed effect model and data from Shanghai Stock Exchange and Shenzhen Stock Exchange(2010-2015),this paper analyzes the impact of listed company's R&D activities on its innovation performance.The results show that:(1)Enterprise R&D input exerts an influence on its patent output,but it varies with the type of enterprise ownership.Compared with stateowned enterprises,collective enterprises,public enterprises and foreign enterprises,private enterprises and other enterprises behave better in promoting their patent output.(2)The impact that enterprise R&D exerts on patent output also varies with the type of industrial characteristics.Compared with enterprises of traditional industry,enterprises of high-tech industry are better at promoting the output of patents.(3)Moreover,the influence that enterprise R&D input exerts on its patent output varies with region.For enterprises in Pearl River Delta region and the Bohai-rim region,there seems to be a more positive correlation between R&D activities and patent output while enterprises in Yangtze River Delta region do not.Hence,the authorities and departments related are suggested to take initiatives for private-owned enterprises to clear the obstacles,such as scale limitation.Meanwhile,state-owned enterprises with scale advantage should continue to deepen reform and strive to improve the efficiency of investment in scientific research departments and the efficiency of technological innovation.At the same time,we must treat R&D activities within traditional industry with a new look,which is supposed to concerned about industrial development and upgrading,and therefore enhance the link between high-tech and enterprises of traditional industry step by step.