Abstract: Exchange rate changing has pass-through effects on the prices of domestic and import and export products, so trade vendors adjust their R&D investment scale and structure according to their market power, which includes price-bonus ability and dependence on import and export; meanwhile, evolution of financial structure plays an important role in R&D structure. Empirical tests with provincial panel data indicate that RMB′s appreciation has significant effects on R&D investment; improvement of market power has different effects on R&D input in different regions, however it makes significant effects with exchange rate for all regions; the cooperation of exchange rate and import or export do the same; in view of R&D structure, enterprises pay more attention to applied research and experimental development while neglect long-term and prospective basic research; the evolution of financial structure do help R&D and East-China show the features. So we should use exchange rate policy reasonably, cultivate enterprises′ market power actively, optimize the allocation of R&D structure and speed up the development of financial market.

Key words: exchange rate pass-through, market power, R&D investment, R&D structure