Abstract: Based on the data, from 2009 to 2014, on the GEM listed companies, we have, in this article, explored the relationship between the market environment and the R&D investment. The result of our study shows that the macro governance environment, innovation atmosphere and the auxiliary innovation conditions are positively related to R&D investment, which indicates that improving the market innovation environment can promote the innovation of the company. Furthermore, distinguishing of company type and company age, the study shows that, compared with the non-manufacturing listed companies and the old companies, there is a significant positive correlation between the market environment and the R&D investment in the manufacturing listed companies and in the old companies.

Key words: R&, D investment