Research On Real Estate Investment And Enterprise R&D Of Non-real-estate Enterprises

As China economy steps into New Normal period,high-quality economic development driven by innovation and research becomes an inevitable option for China.Recently,the innovation capacity of Chinese firms has been enhanced significantly,with the increasing of investment in R&D.However,there is still an apparent gap compared to developed countries with regrad to R&D investments.Meanwhile,real estate price in China has surged in past few decades,attracting many non-real-estate firms to invest in real estate market.This could be an impediment to R&D.The thesis focuses on enterprise innovation behavior,exploring the relationship between real estate investment and enterprise innovation and R&D investments.Firstly,based on micro production theory,the thesis establishes a two-stage theoretical model with two production options:industrial products and real estate.Furthermore,the thesis expands the model into a multi-period continuous decision-making process to incorporate the dynamic adjustment behavior of capital and R&D.Through derivation and numerical simulation,the thesis finds that the increase of housing prices has prompted firms to allocate capital to the real estate sector and reduce R&D investment in order to achieve profit maximization.This process is influenced by enterprise heterogeneity factors including the intensity and depreciation rate of knowledge capital,adjustment costs of R&D investment,as well as exogenous factors such as housing price growth rate and technical shocks.Secondly,the empirical analysis based on micro panel data of listed firms in China from 1999 to 2017 finds that the relative change of housing price growth rate dominates the real estate investment decision of non-real-estate firms.Besides,the entry and exit of non property-based enterprise into real estate industry are asymetric in large cities and small cities.Empirical analysis finds that real estate investment has significantly reduced the intensity of R&D input,which cannot be alleviated by the improvement of financial situation.This is largely different from financial investment.The counterfactual analysis based on the propensity score matching method shows that the above crowding-out effect exists for a long time.In addition,the analysis of enterprise heterogeneity validates the indications derived from theoretical model:firms with higher levels of knowledge capital,higher depreciation rates,and larger R&D adjustment costs are more susceptible to real estate investment.Lastly,the thesis analyzes the indirect impact of real estate investment on R&D output from the perspective of patent application and authorization and new product production.The results show that real estate investment not only weakens the willingness of firms to participate in research and development,but also reduces the quality and efficiency of R&D ouput,which hinders the process of transforming R&D investment into commercial products.The thesis focuses on the analysis of the impact of real estate participation on enterprise R&D investment,which fills the gap of existing research by providing more appropriate perspectives,methods and data.The discovery of the thesis is helpful to understand the role and influence of real estate market from the perspective of enterprise R&D and innovation in the context of China economic restructuring and supply-side reform.The conclusion of the thesis provides a theoretical foundation for the government to adopt targeted measures in encouraging innovative R&D investment,regulating real estate market,and promoting the coordination between real estate development and other industries.