Research On The Relations Between Technological Innovation Of The Technology-intensive Industries And Enterprise Performance

For the transformation and upgrading of China, for no longer being called “World Factory”, technical innovation and scientific development is most important of all. As the leader of technology innovation, technology-intensive industries represent the highest level of national science and technology. In the context of the national strategy transformation, technological innovation is the key of the sustainable development of technology-intensive industries and the increase of economic benefits. While we realize the importance of technical innovation to the healthy development of economic, we should focus on whether current investments of technology innovation achieved results, significantly improved business performance, and transform into competitive advantages.In this study, first of all, depending on factor intensity level industries are divided into three kinds of industries: labor-intensive industries, capital-intensive industries and technology-intensive industries by systematic clustering software, method “Ward”. And from the inputs and outputs two dimensions using three variables: R&D spending, Technical staff strength and the ratio of technology assets as the indicator of technological innovation. Finally, do the study of how these three variables effect ROE and operating margin. Depending on of the data of listed technology-intensive industrial companies of Shanghai and Shenzhen 2012--2014 study how technological innovations effect business performance by multiple regression. Business performance measured by ROE and operating margin.Here are the conclusions of this study: China’s current technology-intensive industries including electrical machinery and equipment, rubber and plastics, computer, communications and other electronic equipment, paper and paper products, railways, shipping, aerospace and other transportation equipment manufacturing and ferrous metal smelting and rolling processing. After the research of listed technology-intensive industrial companies, technological innovations turn to have significant positive effect on business performance. Firstly,R&D spending has a positive effect on business performance,but there’s a certain lag, wherein R & D spending has a significant positive impact on ROE, the R&D spending of last term have larger effects than this term. Current R&D spending has a reversed effect on current operating margin, but the R&D spending of last term have significant positive effects on operating margin. Secondly, the proportion of skilled employee showed a weak positive effect on ROE, and a weak negative effect on operating margin, neither passed the test of significance. It shows that enterprises haven’t successfully transformed investments on technical staff into profit. At last, the radios of technology assets have weak positive effects on operating margin and ROE. The adding of technology assets cannot significantly improve business performance, companies have not successfully transform technological innovations into unique advantages.