Open Journal of Business and Management

Volume 8, Issue 3 (May 2020)

ISSN Print: 2329-3284   ISSN Online: 2329-3292

Google-based Impact Factor: 1.13  Citations  

Does the Cumulative Effect of R&D Investment Exist in High-Tech Enterprises?
—Empirical Evidence from China A-Share Listed Companies

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DOI: 10.4236/ojbm.2020.83072    593 Downloads   1,418 Views  Citations
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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.

Share and Cite:

Qi, R. (2020) Does the Cumulative Effect of R&D Investment Exist in High-Tech Enterprises?
—Empirical Evidence from China A-Share Listed Companies. Open Journal of Business and Management, 8, 1122-1137. doi: 10.4236/ojbm.2020.83072.

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