The Impact of Research Development and Innovation on Enterprise Development: Case Study of BYD and Pfizer

Abstract

After centuries of development, it has been proven that research and development (R&D) and innovation are the driving forces for a country to sustain its economic development and they are also essential to the development of companies. Scientific and technological innovation is strategic support to improve productivity and comprehensive national power, so companies' investment in innovation is increasing year by year. The main output of enterprises is concentrated in the fields of utility models, designs, and applied technology research and development. At the same time, national government policy has placed emphasis on the development of enterprise content and technological innovation, implementing a dual incentive system for enterprise R&D and innovation. This move has helped to energise companies in terms of entrepreneurship and innovation, while also reducing the cost of innovation and driving many new companies to invest in R&D. In this paper, the author discusses whether R&D innovation helps companies to grow by investigating the companys size, governance structure, financial report, and A-share market returns. It is found that R&D innovation is a good driver of business development and can bring advantages to companies.