Research On The Relationship Between R & D Investment And Enterprise Performance In China 's Listed Pharmaceutical Manufacturing Enterprises

The research and development activities of medicine manufacturing enterprise have thecharacteristics of high investment, high risk, long cycle. The cost in research anddevelopment of pharmaceutical manufacturing enterprise is low in our country. Theresearch and development ability is low.It seriously restricts the healthy development ofthe pharmaceutical industry in China. To explore the relationship between research anddevelopment investment and enterprise performance is of great significance to achievehealthy and rapid development of pharmaceutical manufacturing enterprise. It helps tounderstand the research and development correctly, to increase research and developmentinvestment, to enhance core competitiveness.This paper is to research the relationship between research and development investmentand enterprise performance through the relevant data collection and the empirical analysis,on the basis of the theories of economics and previous researches. This paper used therelated data and relevant financial indicators of the listed medicine manufacturingenterprise in2010-2012.It selected research and development cost, research anddevelopment intensity, the number of technical personnel, technical personnel inputintensity as the measures of research and development. It divided enterprise performanceindicators into profitability indicators and growth indicators. Profitability indicatorsincluded operating profit, operating profit rate.It selected operating income growth rate asthe growth indicator, It built multivariate linear regression model and the modified Cobb-Douglas production function model. It tested the result of the study. through the two modelsand the relative and absolute number data.The results show that the research anddevelopment investment in the medicine manufacturing enterprises is generally low;research and development investment and development investment intensity are significantpositive correlation with corporate profitability. Technical personnel is not significantcorrelation with corporate profitability. There is no correlation between research anddevelopment investment and firm growth ability. Enterprise research and developmentresults have certain hysteresis, and the lag of two phase effect is more obvious.Finally, the article analyzed existing deficiency of the research and the future researchprospects briefly, and put forward to related suggestions and opinions on the basis of thisarticle research conclusion.