Does RD investment promote firms' performance? Evidence from the pharmaceutical and biological products listed firms

摘要

Technological innovation by Research and Development (R&D) is at the core of business strategy for firms to compete in the competitive market. This paper tests the correlation between firms R&D investment intensity and the current year / one-year lagged performance of Chinese pharmaceutical and biological products Listed firms, and suggests that there's weak significant correlation between R&D intensity and the current year's performance, and there's more stronger significant correlation with the following year's performance.