Research On The Impact Of Private Enterprise Technological Innovation Investment On Enterprise Performance

Forty years of reforming and opening,private enterprises have been active in China’s city and have continued to develop and grow.Private enterprises have made important contributions to China’s economic development.However,since the 20 th century,with the gradual acceleration of economic globalization,the development of science and technology has been changing with each passing day.The era of relying solely on factor-driven development has passed,and the development of private enterprises is struggling.The 18 th National Congress of the Communist Party of China has pointed out that the development of private enterprises must be driven by innovation.Under the background of the new economic normality and the transformation of old and new kinetic energy,enterprises can improve the core competitiveness by technological innovation,to expand market share and achieve long-term stable development.Firstly,the research hypotheses are proposed by combing related literature.This paper selects the data of China’s GEM listed companies for 5 consecutive years from2013 to 2017 as a sample,measures the technological innovation investment by R&D investment intensity,measures the enterprise performance by operating gross profit margin,analyzes the variables by statistical description and correlation test,and then analyzes the variables.The panel fixed effect model and threshold effect test are used to empirically test the impact of technological innovation investment on the performance of the enterprise in the current period and the lag period,and empirically analyze the industry heterogeneity of the impact of private enterprise technology innovation investment on enterprise performance.The threshold effect is to calculate the threshold value by the grid search method,which is more convincing than the artificial division of R&D investment strength.The results show that:(1)There is a significant nonlinear relationship between technological innovation investment and firm performance with the R&D input intensity as the threshold variable.(2)The impact of technological innovation investment on corporate performance has significant industry heterogeneity.High-tech industry R&D investment and corporate performance are positively related,and there is a significant threshold effect between non-high-tech industries.(3)The investment in technological innovation has a significant lag effect on the performance of enterprises.The effect of lag period and the lag time between different property rights and different industries are inconsistent.Finally,combined with the research conclusions,the corresponding countermeasures and suggestions are proposed from three levels: government,enterprise and financial institutions.