Study On The Analysis And Decision-Making Of SMEs' R&D Investment

The adequacy of R&D investment decisions made by small and medium-sized enterprises,especially the technologically innovative SMEs,directly affects the long-term development of this type of SMEs.The traditional investment decision method mainly considers the time value of funds and the economic status of the project during the entire calculation period,which is a good example of the time value of funds.However,the uncertainty factors contained in R&D investment projects,the flexible choice of investment management decisions,the irreversibility of R&D investment costs,and the existence of competitive factors have made higher demands on the investment decisions of technologically innovative SMEs.Therefore,the main research contents of this article mainly include:Firstly,The game theory of options fully considers the irreversibility of R&D input costs,the homogeneity of R&D products,the competitiveness of R&D products,and the market uncertainty presented by the lack of R&D capabilities and technological innovation strengths.After reviewing the basic theories of investment decision-making,the traditional investment decision-making method well reflects the profitability in investment decision-making and has strong adaptability;but the option game-making method is more effective in combining the uncertainties in SME R&D investment.The nature of the competition between SMEs and the homogeneity of the products they research and develop;the uncertainty advantage of real options theory in the R&D investment decision process;and the applicability of option game theory in R&D investment decisions for enterprises;Secondly,An option game model in which innovative SMEs' investment costs and operating costs are asymmetrical are constructed.Analyzes the influencing factors that affect this type of SMEs' R&D investment.The homogeneity of R&D products,the irreversibility of investment costs,the competition among SMEs,and the market uncertainty cause SME R&D investment to be insufficient,resulting in more R&D investment activities.Be cautious,the choice of R&D investment model will also affect SME R&D investment activities.Assuming that the impact of random market demand for SMEs is consistent with the geometric Brownian movement,combined with the cost asymmetry between competing firms,a certain manufacturer already exists in a certain market,and an option game model based on cost asymmetry is established and analyzed.In the second phase of R&D investment activities of competing companies in the same market,according to the order of entering the market: first enter the market,enter the market later,enter the market's respective value function and corresponding investment threshold,and analyze the equilibrium under the corresponding situation.Through analysis,under the premise of “first mover advantage”,small and medium-sized enterprises can use the option value brought by uncertainty in R&D investment in R&D investment decisions to implement “flexible” management decisions;Thirdly,A and B two small and medium photoelectric enterprises should determine their investment strategies according to the order of entering the market first,entering the market in the later stage and entering the market in the same period.The second-stage R&D investment option game model established in this paper is applied to case enterprises with competitive relationships--Sino-micro-electronics enterprises A and B.Through the determination of the correlation coefficient and parameters in the model,it is necessary to determine the appropriate investment opportunities for the two SMEs with competitive relationships,and to solve the problem of strategic selection of R&D investment decisions for Opto-electronic SMEs A and B;this is aimed at the management of this type of SMEs.And decision makers provide a reference basis and ideas for reference,and provide some reference for competing companies in the same industry.