Abstract

ABSTRACT This study investigates the threshold effect of R&D behaviour on financial performance by using the Chinese electronic equipment manufacturing industry as the sample. Results in this study reveal the co-effect of innovation input (R&D) and output (patents) on corporate financial performance, while patent output has a threshold effect that allows financial performance to be enhanced via R&D input, and the relationship between patent output and financial performance changes significantly when R&D input is used as a threshold.

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