A study on correlation between research and development investment and enterprise value of manufacturing enterprises in China

In the new economic era, which characterized by information and knowledge, enterprises can not develop without Research and Development(R&D) Investment as it becomes the source of core competence and also can determine enterprises' status in the future competition directly. As China's strategic industries, manufacturing industry plays an important role in China's national economy. What kind of correlation does R&D investment and enterprise value have in manufacturing enterprises? Taking this as a clue, this paper refines the index of R&D investment to the intensity of R&D capital investment and the ratio of technical personnel, carries on empirical analysis on correlation between R&D investment and enterprise value by information collected from Shanghai and Shenzhen stock exchange. The results reveal that the intensity of R&D capital investment and the ratio of technical personnel have significant positive correlation with enterprise value, showing hysteresis to a certain extend.