Rippling effect of R&D efficiency of industrial enterprises in China

In order to determine the influencing degree of RD efficiency on RD decision-making,total factor productivity and profitability of enterprise,enterprise production model is established including RD efficiency to analyze the influence of RD efficiency on operation of enterprise.The RD efficiency of industrial enterprises in China in 2007 is evaluated by applying stochastic frontier analysis(SFA) model,which finds that the RD efficiencies of different regions and industries are distributed regularly.Theinfluences of RD efficiency on RD decision-making,total factor productivity and profitability of enterprise are then tested by applying quantitative method.The result of empirical study shows that enterprise with higher RD efficiency tends to increase the quantity and scale of RD investment and the RD efficiency is positively correlated with productivity.Evidence shows that higher RD efficiency can significantly improve the utilization effectiveness of RD investment of enterprise,which can improve the productivity of enterprise more effectively by restricted RD investment;and that there are obvious positive effect of improving RD efficiency on perfecting the profitability of enterprises.