The Role of Research and Development Investment in Company Growth

Empirical Evidence based on the Guangzhou Region

Authors

  • Zhang Gang
  • Julie Ann U. Abellera

DOI:

https://doi.org/10.6981/FEM.202409_5(9).0015

Keywords:

R&D Investment; Company Growth; Regional Economy; Sustainable Operation.

Abstract

Research and development (R&D) are becoming increasingly crucial as the advent of the dual carbon era ushers in a new round of technological revolution, placing enormous pressure on various industries. In response to potential industry reshuffling and industrial chain restructuring, enterprises are intensifying their focus on R&D, resulting in a massive surge of activity. However, is it necessary for all industries to participate? Can all R&D investments drive business growth? This article selects data from manufacturing enterprises in Guangzhou, the holy land of China's reform and opening up, from 2012 to 2022 to empirically demonstrate that R&D investment has not brought expected results and is negatively correlated with enterprise growth. This conclusion serves as a warning to businesses in panic and following the trend. This has important reference significance for corporate governance and scientific decision-making.

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References

Li Jun (2023) Research and Development Investment and Enterprise Growth - Long March Experience data of listed companies in emerging industries in the region, Modern Business, 11-14.

[2] Liu Di, Yin Heng (2016) Understanding the mystery of R&D investment returns: introducing uncertainty, nonlinearity, and firm heterogeneity Financial research.

[3] Wang Yanglan Zhiqing (2024) A statistical study on the impact of R&D investment on corporate performance Henan Science and Technology (total 874 issues, 2024, 03 issues), 154-157.

[4] Wang Yao (2023) Research on the Impact of R&D Investment on High Quality Development of Regional Economy Thesis from Yunnan University of Finance and Economics.

[5] Zhang Gang (2022), Challenges and Countermeasures for the Transformation and Upgrading of Small and Medium sized Enterprises in the Dual Carbon Era, Think Tank Era, 5-8.

[6] Xiao hui(2008),Empirical research on Relationship between R&D Investment and Growth of Listed Hi-tech Enterprises in China, Shanxi University of Finance and Economics.

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Published

2024-09-13

Issue

Section

Articles

How to Cite

Gang, Zhang, and Julie Ann U. Abellera , trans. 2024. “The Role of Research and Development Investment in Company Growth: Empirical Evidence Based on the Guangzhou Region”. Frontiers in Economics and Management 5 (9): 127-38. https://doi.org/10.6981/FEM.202409_5(9).0015.