Research On Relationship Between R&D Investment And The Growth Of Listed Company In Growth Enterprises Market

Faced with the challenges of the knowledge economy and the fierce competition of other enterprises, more and more people are concerned about the growth problem of an enterprise. Growth is an important indicator to measure an enterprise’s business situation and future development ability. If the enterprise cannot maintain growth by obtaining the driving force of sustainable development, it will be difficult for the enterprise to survival in the capital markets. Previous studies have shown that enterprise can achieve better growth by R&D Investment and technological innovation. R&D Investment can make the enterprises consuming fewer resources, conducting to form their own core competitiveness to achieve sustained and healthy development. As the21th century coming, technology is becoming an important strategy resource. The knowledge and technology can bring creative products and keep advantages of competition. Chinese enterprises have made great achievements in the overall quality and scale in the past years, but the technological capacity of Chinese enterprises is still far behind the international leading level. It is worthy to find out how to obtain competitiveness sustainable growth by investing R&D for product and process innovation. China’s Growth Enterprises Market officially opened in2009to provide a financing and development platform for the high-growth and high-tech enterprises. GEM companies which highlight the "innovation" and "grow up", has become a more scientific and reasonable sample for the research of the relationship between R&D investment and growth.Based on the data of listed company in Growth Enterprises Market in China, this paper reviewed the R&D theory, the Growth theory and other relevant literature in domestic and international. On the basis of empirical research methods, this paper established a model to explain the relationship between R&D Investment and Growth using54observations of listed Growth Enterprises Market companies between the year2009-2011. By using the descriptive statistics method, correlation analysis method and regression analysis method, this paper found that R&D investment has a significant influence to the growth of an enterprise. It also proved that R&D investment has a limited impact to the long-term growth of a company. Base on the conclusions, this paper put forward some suggestions for the growth of a company. It is necessary to establish mechanisms to conduct independent innovation. It is important to strengthen the protection of intellectual property rights, encourage technological innovation, accelerate the system construction and improve GEM market. At last, the regulatory authority should strengthen the enterprise R&D information disclosure regulation.The research methods and conclusions presented in this paper provide realistic data and management rules for the GEM listed companies. It helps the management to further recognize the importance of R&D Investment and technological innovation. It also makes some contributions to Chinese enterprises to achieve the sustained and healthy development.