Empirical Study On The Relative Between Investment In Technological Innovation And Financial Performance Of Enterprise

Under the background of the global economy and knowledge explosion, enterprise, as the main part of micro-economic, is facing unprecedented global competitive environment. How to obtain and maintain the competitive advantage has become one of the compulsory courses in each enterprise's strategic development, more and more enterprises realize that technological innovation is the source to maintain and develop core competence. Compared with Western companies in developed countries, the technological innovation activities of Chinese enterprises, whether in financial, or human and material resources, are much lower than the average of foreign investment, restricting China's enterprises in international development seriously.This paper summarizes the results of previous studies, and refined the investment of technological innovation into R&D funding, R&D personnel and equipment assets. From the perspective of corporate finance, the financial performance of corporate is divided into the profitability, capital structure, operational capacity and ability to grow. Then the paper does the theoretical analysis between technological innovation and financial performance, makes the assumptions of this study and empirical models. It takes the listed Companies in electronic information industry from Shanghai and Shenzhen Stock Exchange as the research objects, and selects the financial statements from 2008 to 2010 as the study data to do the empirical study, using descriptive statistics and multiple regression models. In order to make the research more in-depth, it also uses the Cobb - Douglas production function model to analyze the lag and cumulative effect of the input-output technology innovation, and verify the proposed hypothesis correctness. Based on empirical results, it puts forward policy recommendations for electronic information enterprises in China.Results of this study confirm that investment of enterprises'technological innovation has a long-term major impact on financial performance. Chinese electronic information industry is still lack of decision-making on technical innovation investment. It hopes that the results of this study can provide the evidence of technological innovation for not only listed companies but also non-listed companies of Chinese electronic information, which will be helpful for promoting the core competitiveness of electronic information enterprises.