The Balance Effect Of R&D Investment And Government Relationship Investment And The Growth Of Private Manufacturing Enterprises

With the transformation from "made in China" to "created in China",Chinese manufacturing enterprises are accelerating the implementation of innovation-driven strategy and gradually increasing their R&D investment.At the same time,in the process of transformation,upgrading and innovative development,manufacturing enterprises need to continuously strengthen ties with the government,build a good relationship between government and business,and obtain strong support from the government in industrial planning,policy guidance,infrastructure,public services and government subsidies.Therefore,strengthening internal R&D and developing external government relations are of great significance to the growth of manufacturing enterprises,and enterprises must balance the two.However,the existing research mainly focuses on the impact of innovation input and relationship input on enterprise performance,and there is a lack of research on the balance effect between them.In this paper,the balance effect between R&D investment and government relationship investment refers to the arrangement and fit between R&D activities and government relationship construction activities when both of them are very important for enterprise growth but enterprise resources are limited.For this reason,this article is based on the world bank in 2012 for the quality of Chinese companies doing business survey data,explore the balance effect of R&D investment and government relationship investment in private manufacturing enterprises by the theoretical analysis and empirical test,study the following conclusions:(1)There is a balance effect between R&D investment and government relationship investment in private manufacturing enterprises.The strategy of taking care of one thing and losing another is not conducive to business growth.(2)This balancing effect is affected by the business environment such as the degree of government integrity,the degree of fairness of courts,the degree of convenience of customs and trade rules,etc.The better the business environment is,the less the enterprises need to invest in government relations,and the balance effect between government relations investment and R&D investment is weakened.(3)The balance effect of high-tech manufacturing industry is significant,but the balance effect of traditional manufacturing industry is not significant,which is mainly affected by such factors as insufficient R&D investment in traditional manufacturing industry and insufficient policy support.The government should fundamentally solve the problems hindering the development of enterprises,so that enterprises can concentrate more on the construction of productive activities:First of all the government should speed up the system construction,improve the mechanism of the market economy,and protect the rights and interests of enterprises with a sound formal system;Secondly,the government should establish a new type of government-business relationship to provide good public services for enterprises and help them solve difficulties and problems.Finally,the government should attach more importance to the development of traditional manufacturing industry and private enterprises,increase policy support and reduce policy discrimination.This paper enriches the research on the growth of private manufacturing enterprises,extends the application of the ambidexterity theory to the balance between the government investment and R&D investment of enterprises,and puts forward some reference suggestions for the development of private manufacturing industry,the government’s system construction and policy formulation.Therefore,this study has certain theoretical value and practical enlightenment.