The Impact of R&D Investment on the Innovation Capacity of China's Electrical Machinery Manufacturing Industry

Yibo Tang

doi:10.54097/fhwk3a35

Authors

Yibo Tang Nanjing Normal University Yancheng Experimental School, Yancheng, China

DOI:

https://doi.org/10.54097/fhwk3a35

Keywords:

Electrical machinery manufacturing industry; Research and development investment; Innovation ability.

Abstract

China's machinery manufacturing industry is an important part of the country's manufacturing and processing industry. The improvement of technological research and development capabilities must be premised on the continuous increase of research and development funds and the number of R&D technical personnel, and then further influence the enhancement of innovation capabilities and core competitiveness. This study focuses on China's electrical machinery manufacturing industry, utilizing financial statement data and R&D investment data collected from 315 listed companies in the sector between 2019 and 2024 through the use of the Wind and CSMAR databases. Through the construction of a panel data model, from the perspective of R&D investment, analyze the main factors influencing the innovation capabilities of listed electrical machinery manufacturing enterprises in China. The fixed effects panel data analysis results indicate that explanatory variables, including R&D expenditure, firm size, and cash input capacity, exhibit a statistically significant and positively correlated relationship with enterprise innovation output. The correlation between the input of R&D personnel and the innovation ability of enterprises is not obvious, while the asset-liability ratio of enterprises shows a strong negative correlation with the innovation ability. According to the results of the empirical analysis, this paper further puts forward measures and suggestions for enhancing the innovation capacity of China's electrical machinery manufacturing industry.

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