Abstract: This paper uses the panel data of China 72 listed companies over the year 2007-2011 to study R&D investment short term and long term price elasticity. And the study shows that China R&D investment short term price elasticity is about -0.86,the long term elasticity is -1.29,this number is bigger than other countries’ ,those countries are around -1,So China R&D investment is very sensitive to its price.We also find that the reform of China company income tax in 2008 raise the R&D price elasticity and the state-owner feature lows it but both are not positive in statistcs.