Entrepreneur's Time Allocation and R&D Programs of Chinese Private Enterprises
- LIU Yiming & WANG Yiming
- Xiamen University, 361005.
For a private enterprise, since the entrepreneur's time and business funds are limited and valuable resources, how to weigh the opportunity cost and make rational use of scarce resources to ensure healthy development of the enterprise is important for business survival and innovation. Based on the survey data about Chinese private enterprises during the years from 2002 to 2010, this paper analyses how the entrepreneurs' time allocation affects the innovation of their firms. The most important contribution of this paper is that we take into account the time allocation of entrepreneurs in addition to the investments in social activities and the entrepreneurs' political status to explore their effects on R&D programs. What's more, we adopt the two-sided R&D program measurements, i.e. investments in innovation together with patents and new products. The empirical studies indicate that entrepreneur's time for networking, i.e. the unproductive social activities with colleagues, financial institutions, relatives and friends and government departments is significantly conducive to the R&D programs of Chinese private enterprises during the period of economic transformation. And the expenditures on social activities also significantly promote the R&D programs.
JEL：O32, D21, J22
- Chinese Private Enterprises, Time Allocation of Entrepreneurs, Social Activities, R&D Programs