Study On The Effects Of SMES’ R & D Project Input On The Enterprise Performance

We are in a special age, in which our country achieves rapid development of science and technology, and industries are upgrading and transforming. The entire country, from top to bottom, from the government to the enterprises attached great importance to technological innovation, put in lots of resources, and made great progress. But compared with the developed countries, China’s capacities of research and development are still far behind. And a large gap exists between Chinese enterprises and those of developed countries, in terms of R&D and market influence. R&D input and patent output are important parts of the R&D project management, and they are also important metrics in describing research and development activities. Currently, many scholars’ study with these two indicators of corporate R&D activities, and to investigate their effect on the financial performance of the enterprise. But most of the previous studies researched on the samples as a whole, and paid less attention on the impact of control variables, such as industry and the firm size.In this research,163 companies listed on the SME board of Shenzhen Stock Exchange are chosen as samples. In addition to drawing lessons from previous essays, I focused on the impact of control variables, including industry, firm size, R&D intensity, on the model. In this article, the samples are classified by industry, firm size, R&D intensity so that each class can be researched and compared to another. The article also establish multiple linear regression model, to further test the correlation study conclusion. The results of correlation reserch and model test, basically support the assumptions.In this essay, the conclusions are summarized as follows.First, the overall situation of the R&D input of small and medium enterprises is good, but the contribution of R&D input on the profit rate and the sales growth is not significant. It’s different in different industries. The contribution of high-tech enterprises’R&D input on financial preformance is more evident than that of traditional firms. And it’s also different in thie enterprises of different firm sizes. The contribution of R&D input on profits and sales revenue growth is more evident in larger-scaled enterprises.Second, for the China’s small and medium enterprises, the correlation between total patent output and financial performance is not significant, but the correlation between inventive patent output and sales growth (SAG) is very significant. The situation is different in different industries. The contribution of high-tech enterprises’inventive patent output on financial preformance is more evident than that of traditional firms. And it’s also different in enterprises of different firm sizes. The contribution of enterprises’inventive patent output on profits and sales revenue growth is more evident in smaller-scaled enterprises.