Research On The Influence Of R&D Investment On The Growth Of Military Listed Enterprises In China

At present,the traditional cost advantage has been difficult to provide effective support for the healthy growth of enterprises.In the active competitive market,the root of military listed enterprises to enhance their core competitive advantages and realize product or service differentiation lies in strengthening their R&D and innovation capabilities.However,innovation achievements may be transferred to imitators due to technology spillover,which makes the enterprise's income lower than the social income,leading to R&D inertia and further inhibiting the innovation and growth of enterprises.In order to mitigate the negative effects of technology spillovers,government subsidies have gradually become the preferred tool for governments to stimulate enterprises' R&D activities.However,China's military competition has a strong "state-owned" flavor,and the lack of competitive defense product contracts weakens the willingness of for-profit enterprises to compete.These enterprises do not have to worry about the cost when seeking subsidies,and the "goal" of cost maximization may also increase the amount of subsidies they seek from the government.In addition,huge government subsidies do not seem to "stimulate" the growth of China's military listed enterprises.From the perspective of the total market value of listed military enterprises,this index did not increase significantly due to the "explosion" of government subsidies in 2013 and 2014.In terms of the net profit rate and gross profit rate,from 2010 to 2016,the gross profit rate and government subsidies of listed defense and military enterprises generally showed an opposite growth trend.Besides,government subsidies accelerated year by year,while the net sales interest rate of military listed enterprises did not show a significant increase.Previous studies were mainly based on the direct relationship between R&D activities,government subsidies and general business performance of enterprises,but did not discuss in depth the inherent regulating effect of government subsidies in R&D activities on enterprise growth.In addition,a small number of researches on the relationship between R&D activities and enterprise growth mainly focus on science and technology enterprises engaged in more R&D innovation,while the research on the relationship between R&D activities and growth of China's military enterprises has not received much attention.Undoubtedly,military enterprises are an important part of China's overall national defense strategy.The research on the relationship between R&D activities and growth of such enterprises is not only helpful to explore the reasons why enterprises are at a relative disadvantage in innovation and development,but also meaningful for enterprises to judge the true utility of subsidy funds in innovation activities and in the growth of enterprises.In view of this,on the basis of reviewing the previous research results,this paper first theoretically analyzed the main effect of R&D investment on the growth of military listed enterprises in China and the regulation mechanism of government subsidies on this effect,and puts forward the research hypothesis.Secondly,based on the relevant research results,an empirical analysis model is constructed for the logical relationship among R&D investment,government subsidy and military listed enterprise growth.Thirdly,taking the a-share military enterprises listed in the two cities from 2010 to 2017 as the research object,the data were collected,sorted out and pre-processed by WIND and CSMAR economic and financial databases,and checked by referring to the annual reports of the sample listed enterprises published by CNINF and Sina Finance and Economics.Finally,the pre-processed sample data were statistically analyzed by using STATA 14.1 software,so as to obtain the empirical conclusion on the quantitative relationship between R&D investment,government subsidies and the growth of military listed enterprises.The research results show that the R&D investment has a hysteresis incentive effect on the sample military industry listed enterprises.In addition,under the regulation of government subsidies,R&D investment has reduced the inhibition effect on the growth of military listed enterprises in the current period,while its hysteresis incentive effect on military listed enterprises has decreased significantly.