Research On The Influence Of Financing Constraints And Product Market Competition The R&D Investment Intensity Of Enterprises

China’s manufacturing industry is undergoing a process of transformation and upgrading from the traditional "Made in China" to the "Created in China." With the diversified development of the economic market,it is difficult for manufacturing companies to survive in the market relying on previous follow-up and imitation models.In the era of knowledge economy,it is necessary for manufacturing enterprises to rely on independent research and development and innovation to achieve long-term development.In this era of the times,only the reformers advance,only the innovators are strong,and only the reform and innovation wins.Although the R&D investment intensity of China’s manufacturing enterprises has increased significantly in the past five years,it can still have some room for improvement compared with the level of international developed countries.Therefore,it is particularly important to explore the main factors that hinder the R&D investment of Chinese enterprises.R&D investment is difficult to obtain financing from outside due to its high risk,high technology and high confidentiality.The financial support for R&D activities is mainly from sources.Because of internal funds,it is easy to face financing constraints.The fierce competition in the product market will encourage enterprises to invest in R&D.In the face of fierce market competition,enterprises need to constantly introduce new products.Especially for the manufacturing industry,products and technologies with competitive advantages are one of the fundamental driving forces for enterprise development.To create a competitive market environment for enterprises,and guide enterprises to seize market opportunities and continuously develop and innovate,and become an area worthy of study.This paper firstly reads and summarizes the research results of scholars on financing constraints,product market competition and R&D investment.Based on principal-agent theory,information mismatch theory,industrial organization theory and innovation theory,this paper selects China’s A-share listed manufacturing industry.For the research sample,the data of 2013-2017 were collected and analyzed by linear regression analysis.It was found that the R&D investment of China’s manufacturing enterprises mainly relied on internal cash flow,that is,the R&D investment of China’s manufacturing enterprises faced financing constraints.And this problem is more significant in non-state-owned and small-scale enterprises;product market competition can promote the R&D investment of manufacturing enterprises,and finally the regression analysis based on the interaction term of financing constraint and product market competition indicates that the product market The improvement of competition level can alleviate the dependence of enterprise R&D expenditure on intermal cash flow of enterprises,thus promoting the R&D investment intensity of enterprises.Finally,according to the research conclusions of this paper,suggestions on how to strengthen the intensity of R&D investment of enterprises are proposed for both the government and enterprises.