1.School of International Education,Dalian University of Technology,Dalian 116023,China; 2.China Business Executives Academy,Dalian 116086,China; 3.School of Economics and Management,Dalian University of Technology,Dalian 116023,China
Abstract:According to Chinese firms' investment shortage in the basic research,we build a decision-making model based on enterprise heterogeneity to analyze the impact of productivity heterogeneity on the firm investment of basic research.We find that the higher a firm's productivity is,the more active the firm invest in innovation,yet only when the productivity is high enough,the firm would choose the basic research.Using a panel data of Chinese industries,we further confirm that any increase in the return or any decrease in the cost of basic research would encourage firms to do basic research.Empirical studies also suggest that good profitability,appropriate firm size and optimized human capital structure might prompt investment in basic research.To promote Chinese basic research requires to establish a more fair and regulated market,to strengthen the protection for intellectual property and the training of scientists,to straighten the relevant institutions and mechanisms,and to make various innovative resources flow more smoothly among universities,research institutions and enterprises.
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