Research On Enterprise R&D Investment Driven By Local Economic Growth Target

Innovation is the first driving force for development and the strategic support for building a modern economic system.The report of the 19 th National Congress of the Communist Party of China proposes that China should accelerate the construction of an innovative country.Technological innovation will be the core driving force for China's economic and social development,and it is necessary to make technological innovation become China's competitive advantage.As the main body of independent innovation,enterprises have received extensive attention from scholars at home and abroad.Enterprise R&D is an important source of innovation.R&D of enterprises is not only important for improving the competitiveness of enterprises,but also plays an important role in promoting China's construction of innovative countries.The research shows that the internal factors and the external environment of the enterprise will affect the investment decision of innovation,and R&D are affected by many factors.The goal of local economic growth set in the government's work report is one of the macroeconomic goals.It represents the government's economic expectations for the next year,and its level will affect government behavior and intervention in the activities of microeconomic entities.In this context,this paper analyzes the impact of government-set economic growth targets on R&D investment of local companies.In order to study the impact of local economic growth targets in R&D of Chinese enterprises,this paper selects companies listed on Shanghai and Shenzhen Stock Exchanges in 2010-2017 as research objects,and measures R&D investment by the natural logarithm of R&D investment.Conducted a regression analysis of the total sample,the total sample is tested empirically according to ownership,the size of the enterprise and the level of its liabilities.It studies the relationship between local economic growth targets and R&D investment of enterprises,and tries to find out the factors affecting R&D investment of enterprises.The study enriches the impact of government behavior on the behavior of microeconomic entities,and make relevant recommendations to the government and enterprises.Through empirical research,this paper draws the following conclusions:(1)The local economic growth target set by the government has a significant negative correlation with the R&D investment of local enterprises;(2)Among enterprises of different scales,local economic growth targets have a significant negative impact on the R&D investment of enterprises,but the impact effects are different.Local economic growth targets have a significantly greater impact on larger enterprises.(3)Among enterprises with different levels of debt,the local economic growth targets have the same influence on the R&D investment of enterprises,all of which have a significant negative impact,but the impact effects are different,and the local economic growth goals have a significant impact on enterprises with high levels of debt.The above main conclusions are still valid after using the robustness test.The conclusion of the above research shows that the setting of local economic growth goals will have an impact on the management of enterprises.The higher the local economic growth target,the higher the government's expectation for the future economy,the greater the government pressure will be,and the government will exert some pressure on local enterprises to achieve the expected economic goals.Since the local economic growth target is a short-term goal,the government pays more attention to short-term social and economic benefits.Under the pressure of the government,enterprises will be forced to abandon research and development projects that can bring long-term benefits and turn funds into projects that can bring short-term performance.Therefore,Enterprise investment in R&D has decreased.Large-scale enterprises have a greater impact on local economic development,so the government will pay more attention to it.Under the expectation of high economic growth,the pressure from the government will increase accordingly,so enterprises will cut more R&D investment.Enterprises with high debt levels are under pressure from the shortage of funds and the government.Their managers will abandon high-risk R&D projects when making investment decisions.Therefore,local economic growth targets have a greater impact on enterprises with higher debt levels.This study not only provides empirical evidence for the impact of the local economic growth goal on the macroeconomic goal,but also enriches the research on the influencing factors of enterprise R&D,and provides theoretical guidance for China's macro-policy guidance and micro-enterprise behavior.According to the conclusion,the author puts forward some relevant policy suggestions from the point of view of government and enterprise.As the main body of the market,the government and enterprises should base themselves on the long-term development of the country and enterprises,and work hard for China to build an innovative country to promote sustained and healthy economic development.