Research On The Relationship Between R&D Investment And Growth Of Biomedical Companies Based On Financial Data

With the rapid development of science and technology,the ability to innovate has gradually become an important factor in driving the economic growth of countries and regions.At the macro level,the development of innovation capability can comprehensively improve the quality and efficiency of China’s economic growth and strongly promote the transformation of the economic development mode.At the micro level,innovation can enhance product differentiation while better protecting consumers’ needs,thus enhancing the core competitiveness of companies and solidifying their development position.In an enterprise-oriented,market-oriented,industry-academia-research combined technological innovation system,companies are both the main body of technology demand and project determination,and the main body of technological innovation investment and industrialization of innovation results.Therefore,it is important to explore the relationship between company growth and R&D investment in order to fully grasp innovation-driven development.As a strategic emerging industry in China,biomedicine is an important embodiment of national strategic scientific and technological power.At the same time,this industry is also a key industry related to the people’s livelihood of the country,and plays an important role in driving regional economic development and improving people’s living standards.Therefore,this paper explores the relationship between R&D investment and growth of biomedical companies based on financial data from a micro perspective,that is,whether R&D investment has an impact on the growth of biomedical companies.At the same time,since the management of a company holds the lifeline of the enterprise,it is the decision maker and executor,and is the key to the effective use of resources and capital.Therefore,based on the above study,we add the perspective of managerial ownership to further investigate the influence of managerial ownership on the relationship between R&D investment and growth of biomedical companies,aiming to help companies to make reasonable R&D investment decisions and optimize the internal governance structure of companies to promote the long-term development of companies.This study firstly uses literature research method to explain the current situation of domestic and foreign research and the theoretical basis involved,and on this basis,the research hypothesis is proposed;secondly,100 biomedical companies listed in Shenzhen and Shanghai stock exchange before 2016 are selected as the research object,and a total of 500 data from 2016 to 2020 are selected as the sample data;then based on the financial data of biomedical companies,we select 11 indicators,construct company growth indicators using factor analysis,and calculate company growth scores;finally,empirically analyze the relationship between R&D investment and company growth using a two-way fixed-effect model,and add managerial ownership ratio as a moderating variable on this basis to further explore the influence of managerial ownership on the relationship between R&D investment and company growth.The results show that:(1)Current R&D investment has a significant negative relationship with the growth of biomedical companies;(2)The time lag effect of the relationship between R&D investment and growth of biomedical companies is not significant in the short term;(3)Managerial ownership has a moderating effect,and managerial ownership can mitigate the negative relationship between current R&D investment and growth of biomedical companies.