An Empirical Study On Efficiency Of R&D Investment

The companies would continue normal operation if they could sustain profitgrowth which obtained a strong long-term viability in the competitive marketplace.They have to get the core competitiveness to make a profit. Nowadays, more andmore enterprises have realized that research and development (R&D) is the key toimprove its core competitiveness of enterprises, which is also the lifeline of theenterprise survival and development. However, empirical research on the relationbetween improvement of corporate R&D investment and business performance isnot a unanimous conclusion, which based on different perspective, sample or index.So it is necessary to make a further study on this problem.The paper based on the GEM’s high-tech listed companies in R&D investment;investigate the R&D efficiency of small and medium-sized high-tech enterprises inour country from the angle of enterprise performance. With literature review, theR&D investment and technological innovation theories, this paper made anempirical analysis of annual financial report information of230high-tech enterpriseslisted on the GEM from2009to2012We draw the following conclusions: Firstly,Small and medium-sized high-tech enterprises enterprise’s R&D investment have anegative effect on the profitability. Secondly, Enterprise R&D investment canpromote the market value of the company in a certain period of time. Thirdly, R&Dactivities have a significant role in promoting the growth of enterprise. Fourthly,research and development activities have a different degree of hysteresis effect.onthe enterprise performance. Fifthly, the more perfect legal system about propertyprotection outside small and medium-sized high-tech enterprises is, the lowerenterprise R&D efficiency can be. It can be found that small and medium-sizedhigh-tech enterprises in China prefer imitation innovation, which has lower risk, thanthe independent innovation.Finally, based on the empirical results, this paper puts forward suggestions onthe current legal system in China. Based on the present situation of small andmedium-sized high-tech enterprises imitation innovation, policy makers shouldbalance between independent innovation and imitation innovation in policyformulation, to promote our country high-tech enterprise technological progress as awhole.