The Relationship Of Core Business,Opportunistic Business And Innovation Investment

This article uses the data of all A-share companies from 2006 to 2015,and through the empirical analysis,we get the relationship of the enterprise's core business,opportunistic business and the innovation investment,specific as follows.We demonstrated a strong inverted U curve relationship between the core business' s rate of profit contribution and innovation investment.When the core business of enterprises continues to rise,innovation investment will keep increasing,when the core business development touches the ceiling,the market tends to saturation,innovation investment will also be reduced.that is,in the core business field,enterprise's innovation investment is subject to the law of life cycle;opportunistic business has a significant inhibitory effect to innovation investment;Based on the feedback effect,the inhibition still persist in the next one year and two year.Compared with the state-owned enterprises,the profit contribution rate of core business,opportunistic business have a more significant relations with innovation investment in private enterprises.It can be concluded from the above empirical results,when the enterprise is in the growth period,moderate opportunistic business can bring the short-term financial situation improvemnt,but it is important to maintain the dominant position of the core business,the core business 's enhancement effects on innovation investment offset the opportunistic business' s inhibitory effect on innovation investment,especially in the core business maturity and recession stage,the speed of core business itself stimulating innovation investment slows down,if the company blindly immersed in opportunistic business profits,the feedback effect will greatly weaken the willingness and motivation of enterprise innovation and make the core business hollow,even the loss of innovation ability.Once the outlet of the opportunistic business disappears,the survival of the enterprise will face the severe challenges.Therefore,for general enterprises,we must make the clear strategic positioning and coordinate the relationship between opportunistic business and core business.