Company innovation can not only provide a reference for the formulation of innovation strategies at the micro level of firms, but also has important implications for the economic development at the macro level of the country. However, the mechanism of the process from R&D inputs to firm performance has not been fully investigated, resulting in very different results for different samples and sample intervals. Therefore, using the data of listed companies in China from 2009 to 2017 as the research sample, this paper introduces mediating and moderating variables to empirically analyze the mediating effect of innovation output in the correlation between R&D input and firm performance and the moderating effect of firm heterogeneity, including company size, nature of state-owned equity and location. The main findings of this paper are as follows.
First, the impact of R&D input on the financial performance and market value performance of listed companies in China is positive, and the impact is lagged in both cases. Second, innovation output plays an important partial mediating role in the relationship between R&D input and company. Third, company size, nature of state-owned equity and location significantly have partial moderating effect on the relationship between R&D input and performance.
My dissertation breaks through the limitation of previous studies that only examine the impact of R&D input on company performance from a single dimension, and investigates the impact of R&D input on the financial performance and market performance, and introduces innovation output as an important mediating variable, as well as examines the moderating role of company heterogeneity from different perspectives, which enriches the research content, expands the research perspective and makes the study more comprehensive.