Abstract
Capital is a main factor in technological progress and economic growth. Financing is very important for companies R&D investment. The level of R&D investment by Chinese companies is low. Is it because they are subject to financing restrictions? If so, will commercial credit, as an additional source of funding, promote the company’s R&D investment? By using the panel data of listed companies in China's A-shares manufacturing industry from 2008 to 2016, this paper finds that: (1) the R&D investment of listed companies in China's manufacturing industry relies on cash flow, and R&D investment activities may face financing restrictions. the problem of financing restrictions faced by non-state-owned enterprises may be more serious. (2) Trade credit does not have a positive effect on company R&D investment. Trade credit can promote the R&D investment of state-owned enterprises, and it can not promote the R&D investment of non-state-owned enterprises.