The Impact of Financing Capacity on R & D Investment —Empirical Analysis Based on Micro Data of Manufacturing Enterprises in Guangdong

Abstract

Under the background of the rapid expansion of R & D investment of industrial enterprises in China, this paper based on the 2005-2007 China Industrial Enterprise Database, conducted research on manufacturing enterprises in Guangdong Province, and used the micro-data at the enterprise level to empirically study the impact of financing capacity on R & D investment. It is found that the financing ability of enterprises has a significant positive effect on their R & D investment. Among them, with the expansion of the scale of enterprises, the promotion of corporate financing capacity to its R & D investment has gradually increased; the financing capacity has also significantly affected the R & D investment of all types of enterprises, and for state-owned enterprises, foreign-funded enterprises and Hong Kong, Macao and Taiwanese investment enterprises. The impact is significantly stronger than that of the private sector. Its promoting effect is not affected by regional differences. Finally, based on the results of the quantitative analysis and the actual situation in Guangdong Province, the author has put forward some countermeasures and suggestions.