R&D Innovation,Market Competition And Enterprise Value

R&D innovation is the fundamental driving force for improving production.Against the background of the slowdown in economic growth and the pressure of transformation of the industrial structure,my country has continuously increased its emphasis on high-tech industries and strategic emerging industries.In addition to the introduction of various industrial policy support,the state has established and implemented the Science and Technology Innovation Board,and launched a series of formulation and improvement of the direct financing channel system.Although my country’s technology level has taken the lead in the world in individual fields such as high-speed rail manufacturing and 5G communications,on the whole,the R&D innovation level of Chinese enterprises is lower than that of developed countries.On the one hand,the R&D and innovation capability of an enterprise is determined by endogenous factors such as the strategic layout of the enterprise and its ability to raise funds;on the other hand,it is also affected by exogenous factors such as market competition,industrial support policies,financing systems,and policies.In addition,although R&D innovation can effectively enhance corporate value by improving product competitiveness and other means,and bring about an improvement in financing capabilities,it remains to be seen whether the continuous increase in R&D and innovation investment will lead to an infinite increase in corporate value.This paper mainly discusses and studies the relationship between R&D innovation and enterprise value under the regulation of market competition and market share.Firstly,theoretical analysis and statistics of the current situation of R&D innovation are carried out.Secondly,based on industrial organization theory,technological innovation theory,endogenous growth theory and signal transmission theory,it discusses the reasons for the "inverted U-shaped" relationship between R&D innovation and corporate value.Once again,the influencing factors such as market competition and market share are included in the model of R&D innovation and enterprise value for further discussion to study the moderating effect of such exogenous market indicators.Finally,a model is built to empirically test established hypotheses and draw conclusions.This paper takes A-share listed manufacturing companies from 2014 to 2020 as the research object,and establishes a multiple regression model to analyze and study the relationship between R&D innovation and corporate value,and the moderating effects of market share and market competition on the relationship between R&D innovation and corporate value.The results show that there is a significant "inverted U-shaped" relationship between R&D investment,patent application and enterprise value of listed manufacturing companies.Market share promotes the positive relationship between R&D innovation and enterprise value,and there is a negative relationship between market share itself and enterprise value.Market competition has a certain inhibitory effect on the positive relationship between R&D innovation and corporate value,and there is a positive correlation between market competition itself and corporate value.In this paper,the industry average value formed by excluding the company’s own R&D investment and patent applications is used as an instrumental variable to test the robustness of the original model.The sign and significance of the main variables are consistent with the original regression results,and the overall conclusion is robust..Summarizing the above research results,this paper recommends that the government actively guide the formation of a good market competition atmosphere,create a good business environment,and avoid and eliminate the occurrence of vicious competition and monopoly,so as to provide positive guidance for enterprise R&D and market competition;continue to promote The reform of state-owned enterprises,rational allocation of various resources,to achieve the unity of efficiency and fairness;encourage enterprises to increase investment in R&D and innovation,promote state-owned enterprises to implement long-term sustainable development strategies,and actively carry out technological innovation.Enterprises should grasp their own advantages in R&D and innovation,but they should not invest excessively and blindly in research to meet the innovation subsidy policy.