Research On The Impact Of Investment Real Estate And Regional Culture On Corporate Innovatio

As socialism with Chinese characteristics has entered a new era,China’s economy has changed from a stage of high-speed growth to a stage of high-quality growth,and the whole country is entering a critical period of transforming its development model.Innovation,as the primary driving force behind the new development concept,plays an important role in sustaining and healthy economic development in China.But the reality of rapid rise in house prices and the high rate of return of real estate industry has attracted more and more capital into the real estate industry,enterprise’s R&D spending by extrusion,lead to enterprise innovation ability is insufficient,the mismatching of internal resources,hampering the enterprises to develop their own business,in the long term conducive to the sustainable development of enterprise economy.At the same time,the growth of investment real estate also has a negative impact on the innovation of enterprises through the internal interest drive and principal-agent problems.In addition,in a country with a vast territory like China,it is extremely important to study different regional cultures with different physical geographical environments,religious beliefs,dialects and economic development.Therefore,this paper adds regional cultural variables to study the direct and indirect impacts of different regional cultural dimensions on enterprise innovation.Based on previous studies,this paper utilizes panel data of Chinese A-share listed companies from 2012 to 2019 as well as city-related data in the same year.The explanatory variable is the ratio of "investment real estate" and "total assets" in the annual report of an enterprise to measure the level of investment real estate.The explained variable is measured by the number of patent applications of listed companies and their subsidiaries in the current year and the logarithm of invention patent applications.The variable data related to regional culture are derived from the indicators of different dimensions to measure regional culture in The Map of Chinese Regional Culture: "Unification" or "Diversification" by Zhao Xiangyang.In this paper,the relationship between investment real estate,regional culture and enterprise innovation is analyzed theoretically and empirically.In the empirical analysis,the fixed effect model is used to fix the time effect and industry effect.Based on the empirical results,the hypothesis is tested and the influence of investment real estate and regional culture on enterprise innovation is explored.Finally,we draw the following conclusions :(1)investment real estate has a significant inhibitory effect on enterprise innovation,and the inhibitory effect of investment real estate on enterprise innovation is persistent.(2)The uncertainty avoidance dimension and future orientation dimension of regional culture have a direct positive impact on enterprise innovation.(3)The future orientation of regional culture is the moderating variable of the impact of investment real estate on enterprise innovation,and the future orientation will strengthen the inhibitory effect of investment real estate on enterprise innovation.Past few literature will affect the enterprise innovation of regional culture as a variable,in this paper,the study found that the regional culture of uncertainty avoidance dimension and the future orientation dimension have a direct positive influence on the innovation of the enterprise,and joined the variable investment real estate,the future of the region culture orientation can enhance the inhibitory effect of the investment real estate to enterprise innovation.In fact,this can be interpreted as that in regions with strong future-oriented dimension in regional culture,enterprises will pay more attention to reducing future financing constraint pressure by investing in real estate rather than investing in R&D with existing cash flow.The findings of this paper provide some suggestions on how to strike a balance between maintaining enterprise innovation and developing the real estate industry.