A Formal System, The Influence Of Social Capital To Invest In Research And Development Research

A problem is widespread that technological innovation activities of Chinese private enterprises are limited by the enterprise resource bottleneck constraints. In recent years, institutional theory and social capital theory have been more and more attentioned in the field of technological innovation research. This paper extends the connotation of the institutional environment, divides the private enterprise institutional environment into formal and informal two aspects. Without doubt, as the core areas of technology innovation process, R&D investment decisions will be directly related to the technological innovation activities’smoothly going. Therefore, in the view of R&D investment decisions, this paper gets down to do research from three aspects, the external market-oriented of private enterprises, corporate governance and social capital. Using spot check data of national private enterprises in the years of2004,2006and2008as samples, and matched the index of marketization in the years of2003,2005and2007, this paper does empirical research of formal system and social capital on the influence of private entrepreneurs’R&D investment decisions which includes the tendency and intensity of R&D investment using stepwise regression method.The study found that:(1) The external market of private enterprises have an important impact on its R&D investment decisions. The extent of price determined by the market and the development level of intermediary organizations have significant positive effect on the propensity of R&D Investment and have significant negative effect on the intensity of R&D investment of private enterprises. The degree of credit capital allocation of market-oriented has significant inhibitory effect on the propensity of R&D investment but not obvious effect on the intensity of R&D investment.(2) The internal corporate governance has an important influence on enterprise investment decisions. The completeness of corporate governance of private enterprise have a significant but not stable impact on R&D investment propensity and intensity; The ownership concentration has significantly inhibitory effect on the intensity of R&D investment of private enterprises; Two hats concurrently of general director and the general manager can promote the private enterprises’R&D investment effectively, but does not affect the intensity of the investment.(3) The social capital of the private entrepreneurs has an important effect on R&D investment decisions of private enterprises, which exist certain regulatory role in the impact of formal institution on R&D investment decision, and in which the political relationship capital’s impact is particularly significant.Theoretically, the results of this paper’s study will lay the foundation for the research of more complex innovation institutional environment and technological innovation mechanism, and promote the theoretical research in the field of institutional innovation and technological innovation. Practically speaking, this research result will provide a theoretical guidance for R&D investment decision of Chinese private enterprises which are in the stage of transformation, and also provide reference for the system construction decision-making of government.