The Research On Correlation Between R&D Investment Intensity And Enterprise Performance Of HUAWEI

Science and technology innovation is the source and driving force of the country's sustained economic growth,and has become a key factor to improve the core competitiveness of the country and enterprises.To be invincible,a country or an enterprise must be strong in science and technology,which is mainly due to the R&D intensity of the enterprise.However,enterprise R&D activities have certain risks,in the practical application of the possibility of increasing R&D investment,not only does not reduce costs to improve performance,but also cause a waste of resources,causing negative impact on enterprise performance,so the correlation between enterprise R&D intensity and performance has become the current government,enterprises,experts,all parties concerned about the issue.Huawei,as the leading enterprise in China's communication industry,has a leading position in enterprise R&D.Huawei's continuous improvement in R&D investment is the most important factor.Huawei's continuous increase in R&D investment has caused a debate in the industry.In the early stage of development,it is necessary for Huawei to invest a large amount of money in R&D,and it is also a struggle to build a strong country in science and technology,but as Huawei develops and grows,Huawei still insists on spending ten percent of its annual revenue on R&D.What is the impact of Huawei's such high R&D investment on performance,and what is the correlation between Huawei's R&D investment and performance? This paper is based on these questions.Based on the input-output theory,technological innovation theory,R&D investment theory,and human capital theory.This paper uses case study analysis and mathematical and statistical methods to study the correlation between R&D intensity and corporate performance,and selects R&D expenditure,R&D expenditure growth rate,the number and proportion of R&D personnel,the number of patent applications and licenses as R&D intensity indicators,profitability indicators,asset operation level indicators,solvency indicators,and development capability indicators as corporate performance indicators.The correlation between the two is analyzed by mathematical and statistical methods,using the relevant data of Huawei's annual report for 11 years from 2009 to 2019 as the sample.Based on the findings of the study,recommendations are made at the national and enterprise,external and internal levels.The government should strengthen financial support,introduce corresponding preferential policies,and increase the protection of intellectual property rights,while the enterprise should increase the intensity of investment in product R&D,improve the conversion rate of R&D results,and pay attention to the introduction of talents.