The Effects Of Internet Business R&D Activity On Market Power

Today,with the booming Internet economy,companies have adopted innovative strategies,increased R&D activities,and gained stronger market power to respond to the ever-changing online social environment.Internet companies often have a certain amount of market power.Because of their higher market share and brand influence,these companies tend to be more able to grasp the initiative when conducting price competition.And with the evolution of the company,the market power of the company is changing dynamically.Therefore,this article takes 204 Internet companies of BVD-ORBIS global enterprise database from 2014 to 2016 as samples to study the impact of R&D activities on corporate market power from the perspective of enterprise life cycle.It has important theoretical and practical significance.Firstly,this article reviews domestic and international literature on the life cycle of companies,R&D activities,and market power;secondly,we analyze the status quo of Internet companies R&D and market power;then based on literature analysis,we sorted out R&D activities to form the three main impact paths of market forces,and analyze the evolution of different life cycle corporate markets from a dynamic perspective;then we analyze the logical mechanism of R&D activities on corporate market forces from the perspective of life cycle;Afterwards,this article selected 204 global Internet listed companies as research samples and empirically studied the impact of R&D activities on market power of enterprises in different life cycles;Finally,we conclude research conclusions and propose policy recommendations.Through empirical research,this paper finds that corporate market power within a company's life cycle are dynamic and mature during the maturity period;R&D activities can significantly increase corporate market power,with regional development having a significant impact;R&D activities in different corporate lives have different influence on market power.This article suggests that the state should continue to deepen the reform of the economic system so that enterprises are truly becoming the mainstay of R&D investment;the government must guide,support,and encourage R&D activities of enterprises;enterprises must seek innovation,development,and competitiveness through multiple channels;Life cycle companies should maintain reasonable R&D investment to seek innovation and development.