TITLE:
Does the Cumulative Effect of R&D Investment Exist in High-Tech Enterprises? —Empirical Evidence from China A-Share Listed Companies
AUTHORS:
Ruixiong Qi
KEYWORDS:
R&D Investment, Cumulative Effect, Lag Period, High-Tech Enterprises
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.3,
May
9,
2020
ABSTRACT: In the international society, a new-round revolution is being launched
with the continually rise of new technologies. Technical innovation in global
perspective has become corporate and national strategy. This article takes the
high-tech enterprises from China A-share listed companies as research sample,
empirical results demonstrate: The input of R&D investment has a lag period
of 2 years and cumulative effect on output; the
regression coefficient of initial investment of R&D funding to the current
performance is 1.17 that is the type of increasing returns. This article
suggests that high-tech enterprises should
constantly improve corporate governance mechanism, accelerate transformation of
R&D achievements, shorten R&D process to improve R&D efficiency, and establish a value evaluation system for independent
innovation projects. The research enriches literature of independent industry,
different with the existing
research models, with cumulative effect using
Cobb-Douglas production function model based on the random effect of panel data.