Abstract—This paper uses 30 listed companies of the Internet of Things board in Shanghai and Shenzhen Stock Exchange as the research object, and collects the disclosed data in corporate annual reports from 2011 to 2013. Then we make an empirical study on the lag effect and the cumulative effect of R&D investment. We find, first, R&D investment has a non-significant impact on the current firm performance. Second, R&D investment has a positive impact on profit margin in the first lag phase, and the impact of the first lag phase is the most outstanding. Third, the cumulative effect of R&D investment has a negative correlation with firm performance. Finally, based on the results, this paper puts forwards some relevant policies for the related parties.

Index Terms—R&D investment, firm performance, lag effect, cumulative effect, the Internet of things

Cite: Jian Xu and Zhenji Jin, "Research on the Impact of R&D Investment on Firm Performance in China's Internet of Things Industry," Journal of Advanced Management Science, Vol. 4, No. 2, pp. 112-116, March 2016. doi: 10.12720/joams.4.2.112-116