Abstract: By making use of the survey data concerning the business environment in 2012 from World Bank, this paper studies the impact of business environment on corporate R&D input from the three dimensions, i.e., the level of government integrity, the efficiency of government services and the market environment. The empirical results show that the higher the degree of government integrity, the higher the efficiency of government services and the better the market environment in which the enterprises operate, the higher the intensity of corporate R&D investment will be. Further researches show?that the business environment has less impact on the R&D input intensity of firms with stronger political connections. According to the above results, we should speed up the construction of service-oriented government.

Key words: business environment; R&D investment; innovation