The impact that research and development investment has on financial performance in invironmental protection industry

Abstract

In the 21st century, countries around the world have attached great importance to the development of science and technology. China put forward the “science and technology promoting environmental protection” strategy. Environmental protection is the focal point of economic growth, structural adjustment and people's livelihood improvement. The environmental protection industry in China started relatively late. There is a big gap with developed countries in the policies and regulations of environmental protection, the environmental protection industry enterprise scale and the policy guidance of environmental protection industry and so on. Environmental protection science and technology input region difference is very big, around the range of environmental protection industry development is unbalanced. In this paper, I will explore the differences and analyze the causes of differences by analyzing the current situation of the development of environmental protection industry at home and abroad. In addition, enterprise's profit ability and development ability both will be analyzed, by using the regression analysis method. Finally by comparing the empirical conclusion and using the experience of developed countries, the paper will put forward policy suggestions which can guide environmental protection enterprises to enhance research and development (R&D) investment in green technologies, promote the environmental protection industry in financial performance and promote the sustained and healthy development of environmental protection industry.