The Impact Of R&D On The Profitability Of Technology-based Listed Companies

Four decades of reform and opening up,China ’s economic development model has shifted from the traditional factor-driven model to innovation-driven model.Under the more complex and changeable international situation,only by giving full play to the leading and supporting role of science and technology,and creating a group of enterprises with core technology and growth toughness,can China get rid of the long-term low-end industrial division,grasp the initiative of competition and development,and promote high-quality sustainable development.Based on the data of 986 high-tech listed companies in manufacturing industry and information service industry from 2011 to 2020,this paper studies the relationship between corporate R&D activities and corporate profitability through panel data regression analysis,especially in the group of ’small giant ’ enterprises.At the same time,combined with the development process of some powerful countries in science and technology,’ taking history as a mirror ’ expounds the first driving force of China ’ s development guided by scientific and technological innovation,and the inevitable choice of cultivating small and medium-sized enterprises(SMEs)to ’specialization,refinement,uniqueness,and innovation’ development.The conclusion of this paper is that R&D investment of science and technology listed companies has a positive impact on business performance,the related impact is more evident in ’small giant’ enterprises,and business performance is also related to enterprise size,asset-liability ratio,government subsidies play a mediating effect in the impact of R&D investment on firm business performance.This paper innovatively investigates the relationship between R&D investment and profitability of the group of"Specialized and New" enterprises,which is an important group to enhance the advanced and modernized industries in China and to drive the development by innovation,and gets the conclusion that ’small giant’ enterprises need to be’committed ’ in R&D and improve their core competitiveness and business performance through continuous innovation.Based on the above research results,this paper draws two enlightenments.One is that technology-based listed companies can improve their profitability by increasing R&D investment.The other is that " small giants " enterprises should give full play to the advantages of professional fields to promote the rapid improvement of profitability.Finally,the enterprise management and government policy recommendations.