Research On The Influence Of SMEs' Financing Model Selection On Enterprises' R&D Investment

In recent years,Chinese government has announced the policy of "Mass Entrepreneurship and Innovation”,that means enhance the capability of innovation has become the key element of countries' economic growth and enterprises' sustainable development.As an important part of the national economy,SMEs have made outstanding contributions on promoting macro-economy,ensuring employment and improving people's livelihood,etc.In addition,SMEs group is the most energetic driver of technological innovation which requires stable research and development(R&D)financial supporting.SMEs are usually preferring to choose diversified financing models to obtain R&D capital and its financing issues have been concerned for a long time.However,what the differences between financing models,whether the financial decisions are same for SMEs in different periods of life-cycle,which need us to explore the relationship between SMEs financing model selection and R&D investment.Based on comprehensive research of overseas and domestic references,this dissertation defined the concepts of small and medium-sized enterprises and R&D investment at first.After analyzing the relevant theories and the development of Chinese SMEs' overall reality,we selected SMEs as the research object.From the empirical perspective,in order to measure the effect of different financing models on R&D investment.We selected 229 qualified enterprises'2011-2017 disclosure data to construct a dynamic panel model and used two-step system generalized method of moment(GMM)to regress the whole and split samples.Finally,this essay tried to propose policy recommendations from the perspective of optimizing macro-environment and improving micro-status.According to the theoretical analysis and empirical results,we drew the following main conclusions:SMEs' R&D activities have remarkable successional characteristics,so it's significant to give continuous financial supporting on R&D investment.On the whole,SMEs will select both internal and external financing models in terms of R&D investment,but the supporting effect of each financing model is different.SMEs have R&D smoothing tendency via cash management.In the meanwhile,government subsidies have a positive supporting effect on SMEs' R&D investment.For SMEs in different period of life-cycle,the positive supportive role of debt financing is no longer obvious.And the R&D smoothing effect and financial support effect by government subsidies are respectively applied to maturity and growth phases SMEs.