Financing Capacity Impact: Small & Medium Enterprise Research and Development Investment

Abstract

R&D investment is the main driving force for technological innovation, and a steady source of fund is he key to business R&D investment.  Research taking 2009-2013 period sampling small medium technology enterprises from Shen Zhen Stock market and explore the impact of corporate finance ability towards R&D investments. The article use profitability, operational, solvency, ability to grow, enterprise size as five affect variables of small medium technology corporation R&D investment. The result shows that the profitability of R&D expenses have a significant negative impact, but the investment has a major positive impact on R&D personnel; operational, solvency have obvious positive impact on R&D expenditures; corporation sizes, ability to grow have substantial negative on R&D expenditures and R&D personnel. Further analysis showed that the regional difference of the enterprise affects the relationship between financing capacity and R&D investment.