Research On The Correlation Between R & D Investment And Business Performance Of Great Wall Motor Co

With the continuous advancement of science and technology,the automotive industry is undergoing profound changes,and domestic self-owned brands have also ushered in the spring of development.In the fierce competition in the industry,how to ensure that their position in the industry has become a huge issue for every car company.The survival and development of the enterprise can’t be separated from innovation and creation.The car manufacturers in various countries have also deeply realized this,and have increased investment in innovation and R&D.As a leader in domestic auto brands,Great Wall Motor can be said to be a microcosm of domestic auto brands to a certain extent.In recent years,Great Wall Motor’s sales have continued to grow.The reason is that it has continuously increased investment in innovation and has driven innovation through innovation.As we all know,there are risks in R&D investment.It may also lead to R&D without output and would waste the limited resources of the company.Therefore,through the quantification of Great Wall Motor’s R&D investment and business performance,then analyze its relevance to more intuitively show the relationship between the two,discover the problems existing in the company and propose countermeasures and suggestions,which will provide reference for Great Wall Motor and similar companies to carry out scientific and technological innovation and achieve faster and better development.Through collation and research on relevant literature data,it has been found that most of the research on R&D investment and corporate performance is empirical research.A certain industry or region is the object of study.The conclusions and recommendations are also lacking in targeted research.Although there are also individual scholars who conduct related research on individual companies,they are relatively single in the analysis process and selection of indicators,and cannot fully explain the correlation between R&D investment and corporate performance.Based on the deficiencies of historical research,this study carried out two innovations: First,select case studies.The Great Wall Motor,a domestic auto company that places great emphasis on scientific and technological innovation,has selected a case study for the research sample,and the conclusions reached are even more valuable for the company and even the industry.The second is that the indicator design is relatively new.At present,Chinese scholars have not reached an agreement on the selection of performance evaluation indicators,so there is no set of specific industry standards.In this paper,according to China’s national conditions,13 indicators that reflect the company’s profitability,development ability,operational ability,and debt repayment ability are selected,and the comprehensive performance indicators obtained by using factor analysis can more fully reflect the performance of the company,this will increase the credibility of the research findings.The research first defined related concepts such as R&D investment,corporate performance,R&D investment and corporate performance,and then analyzed the application of relevant theories such as technology innovation theory,research and development theory,human capital theory,and signal transmission theory in this research.Then,based on the case study of Great Wall Motor,the company elaborated and analyzed the research and development of Great Wall Motor,especially its R&D management model—IPD three-level plan system.Then,the data of Great Wall Motor from 2011 to 2016 was taken as a sample,and the total R&D investment was selected,R&D input intensity,number of R&D personnel,and number of employees with master’s degree or above are used as indicators of R&D investment.At the same time,thirteen performance evaluation indicators that reflect the company’s profitability,development capacity,operational capacity,and solvency are selected and integrated.After considering the regional and industry characteristics,46 manufacturing listed companies with the same manufacturing sector as the Great Wall Motor Co.,Ltd.in the Beijing-Tianjin-Hebei region were screened out and the 13 indicators of each company were calculated,and then SPSS 20.0 was used for factor analysis.Four common factors,and finally the comprehensive performance indicators are calculated based on the scores of the individual indicators.Then we analyze the correlation between Great Wall Motor’s R&D investment and company performance,and analyze the relationship between the two by using trend analysis,correlation coefficient and fitting graph analysis.Based on the analysis results,the following conclusions are drawn: The total R&D investment is positively correlated with the overall performance of the company.The R&D input intensity is positively correlated with the overall industry performance.The number of R&D personnel is positively correlated with the company’s lagging phase I overall performance.The overall performance is positively correlated.The above conclusions indicate that corporate R&D investment can boost its performance and promote the development of the company;finally,combining the problems and results found in the analysis process,the government and the enterprise are suggested to make corresponding policies.The suggestions made by the government include standardizing the disclosure of R&D input and enhancing the accuracy of R&D data;formulate policies for encouraging innovation and further promote tax and fee reform;Promote the transformation of scientific and technological achievements into practical productivity,strengthen the cultivation and introduction of innovative talents,and improve the talent development system;suggestions for companies include accurately grasping the market and increasing investment in R&D;strengthen the selection and management of R&D projects,increase R&D input and output rates,and focus on training R&D personnel to avoid brain drain.