The Impact Of R&D Stock And Output Volatility Of Firm

Having grown rapidly during thirty years,Now China have entered in a new period named"new normal",economic structure differentiation is obvious,some related economic index with abnormal fluctuating source.Under these economic pressure,improving the supply environment and perfecting the supply structure,attaching great importance to firm's productivity and innovation capability is core power to reverse the economic downturn.At the same time,the high-speed delayed effect of development is insufficient,we should focus on how to make economic stability and sustained growth.Further increasing investment on R&D and improving creative ability will be one of the main research aspects.On the basic of the theory of endogenous economic growth,this paper build a horizontal model with the purpose of enlarging product categories and a vertical model aimed at quality upgrade.lt is found that the impact of R&D stock and output volatility of firm are generated from combination of both mechanisms.We made use of 6-year annual reports data of Chinese listed company and verified this impact.The results here show that:(1)the impact indicates a U-shape relation.When R&D investment is low,R&D stock will weaken firm volatility,firms'ability of facing risk will be improve because of product type enlargement;with the stock accumulated constantly,instead of effectively decreasing the volatility,the investment of research and development will promote firm volatility.(2)According to R&D intensity differentiate the firms,we find that industry which R&D intensity data exceed 0.2,creative destruction would be play a leading role,give rise to fluctuation of output.In conclusion,firm should maintain a proper R&D investment,and ensure the stability of supply side.