Whether The Companies Need To Choose The R&D Direction

This paper mainly studies whether the companies need to choose the R&D direction.It is specifically through two aspects: how patent policy affects R&D direction and how R&D direction affects enterprise performance.Specifically,this paper will answer the questions from the following aspects.First,the model derivation and numerical simulation are used to verify it.Second,the data from pharmaceutical listed companies is selected to analyze it.This paper examines how patent law standards affect R&D intensity,R&D direction and enterprise innovation rate.by establishing a theoretical model.The research shows that in the low-risk direction,the R&D intensity first decreases and then increases as the patent law standard rises,which presents a positive U-shaped relationship.While in the high-risk direction,the R&D intensity first increases and then decrease as the patent law standard rises,which presents an inverted U-shaped relationship.Because the company's investment is limited,the change of R&D in the high-risk direction and the low-risk direction will be opposite,and the R&D direction and the patent law standard also have an inverted U-shaped relationship.The patent law standard will affect the research enthusiasm and income of the enterprise.If the patent law standard is too low,the enterprise can easily obtain the patent which has little value inside and can be easily replaced,so the efficient time for the enterprise is not long;If the patent law standard is too high,the company will give up innovating because they cannot meet the requirements of the patent,and it will damage the enthusiasm for research in the long run.Therefore,there is an optimal patent law standard,which can ensure companies with patent rights can obtain more profits and have a monopoly,and stimulate enterprises to participate in R&D.In addition,because the company's research direction is diverse,and the probability of obtaining patents is not equal,and there is also an optimal research and development direction to maximize the innovation rate of the enterprise or industry.In numerical simulation,this paper compares the results of different distributions.The result shows that changing the distribution function will not change the correlation between R&D intensity and patent law standards,but it will change the R&D direction and the number of enterprises.Compared with the uniform distribution,the normal distribution increases the expected value of quality improvement.It will lead more people to develop in the high-risk direction and promote competition in the industry.The direction of R&D and the quality improvement affect the innovation rate of enterprises.Therefore,the numerical simulation results verify the idea that enterprises need to choose the direction of R&D.In addition,this paper further establishes a correlation model between R&D direction and enterprise performance to verify whether the enterprise needs to choose the direction of R&D.Based on the data of 119 pharmaceutical listed companies during 2011-2016,this paper has made the following conclusions: First,the efficiency of enterprises is affected by many factors.From the perspective of R&D innovation,except that the total input of resources and the intensity of input will affect the efficiency of enterprises,the allocation structure of resources will also affect the efficiency of enterprises.In the pharmaceutical industry,there is an inverted U-shaped relationship between corporate performance and R&D direction.Therefore,choosing the right R&D direction is very important.Second,the optimal R&D direction under different patent policies is different.Therefore,R&D decisions and resource allocation of enterprises need to be adjusted.