Study On The Relationship Between Technological Innovation Investment And Financial Performance In Pharmaceutical Industry Listed Company

In today's world,the rapid economic development and increasing competition make the market structure change rapidly.More and more enterprises realized that only technological innovation which can secure victories in these ever-changing market.As is known to all,the new product of technological innovation investment can bring huge profits,but the initial marketing expenses are also high,causing that financial performance often has a lag,so for the cash-strapped or start-up stage enterprises of the pharmaceutical industry,where does innovation investment input derive from?Although a large number of capital investment did not bring immediate results,why do enterprises continue to carry out technological innovation investment?According to the research model of Douglas North "institution-behavior-Performance",the ideas of this paper is "policy guidance-innovation investment-financial performance".Technological innovation will bring new products or improve the efficiency of existing products,but the new product from firstly entering the market till to bringing the financial performance often has a lag,the pharmaceutical enterprise which in pursuit of profit is reluctant to invest too much on technology innovation.So the support from government to enterprise will cause companies increasing investment in technological innovation,which means the innovation of pharmaceutical enterprises in our country has a close relationship with the support of our government.If you can prove that the government subsidies make a great contribution to technological innovation investment,you can indirectly prove that the importance of government subsidies for enterprise innovation in pharmaceutical industry of our country.On the basis of theoretical analysis of competitive strategy theory,life-cycle theory,market failure theory,we deeply research the relationship between the technological innovation investment and financial performance,the influence of the government subsidies for technological innovation investment,through empirical analysis of the enterprises in pharmaceutical industry of 2010-2013 which listed the in Shanghai stock exchange and Shenzhen stock exchange,we draw the following conclusions:(1)the intensity of technological innovation investment and sales gross profit margin is significantly positive correlation;with the improvement of technological innovation investment strength,sales gross profit margin will rise;(2)technological innovation investment intensity has no significant effect on operating income growth rate;(3)the technical innovation investment has lagged effects on sales gross profit margin:technological innovation investment intensity lagged one year,two years and three years has a significantly positive correlation with sales gross profit margin;with the improvement of technological innovation investment strength,sales gross profit margin will rise;(4)the technology innovation investment has lagged effects on operating income growth rate:technological innovation investment intensity lagged one year and two years has a significantly positive correlation with operating income growth rate;with,the improvement of technological innovation investment intensity,operating income growth rate will rise,but technological innovation investment intensity lagged three years has no significant effect on operating income growth rate.(5)the government subsidies contribution is significantly positive related to the intensity of technological innovation investment;with the improvement of government subsidies,enterprise's technological innovation investment will rise.Research conclusion of this article will be much helpful for us to learn more about the relationship between technology innovation investment and financial performance.