The study looked at how distortions in the market for resources affect research and development in China's high-tech industries. They found that these distortions have different effects on investment in research equipment and hiring research staff. Market distortions reduce investment in equipment but increase hiring of research staff. After China joined the WTO, the negative impact on equipment investment decreased, and the effect on hiring became less significant. The impact of market distortions on research investment varies by region and is influenced by the size, openness, and capital intensity of the company. Other factors like demand for new products, access to financing, financial investment, and intellectual property protection also affect research investment.