DOI: 10.14704/nq.2018.16.6.1597

Decisions on Investing Social Funds in Technology Research and Development Based on Cognitive Psychology

Zhiqin Xie, Xiaoyan Cao, Yan Liu, Xia Wu

Abstract


With the rapid development of the economy, it is an important task for the Chinese private corporates to complete the industrial upgrading in the fierce competition and maintain the vitality and competitiveness. One of the important factors is the serious shortage of R&D investment. Cognitive psychology is introduced in this paper, focusing on the relationship between the cognitive bias of business managers and the R&D decision-making mechanism of corporates. The model of R&D decision-making mechanism is established through theoretical analysis, and the factors that affect R&D decisions are analyzed and discussed, more than 200 corporates are selected to discuss the influence of different cognitive bias on the decision-making mechanism by the empirical analysis. The results show that overconfident managers have positive impact on the R&D intensity of the corporate, however, overly optimistic managers have negative impact on the R&D intensity of the corporate. Finally, based on the management practice, based on the perspective of cognitive psychology, the paper delivers countermeasures and suggestions on how to improve the quality of the R&D decision of private corporates, enriches the influence of cognitive bias on the decision mechanism of R&D of corporates, and provides a reference for the construction of new market economy countries.

Keywords


Cognitive Psychology, Capital Input, Decision Analysis

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