An Empirical Study Of The Relationship Between Technological Innovation Capability And Growth In SMEs

In today's market economy environment, enterprises must carry out technical innovation to obtain the long-term development. Through technological innovation enterprises produce their own core competitiveness. So currently, the relationship between technological innovation and business growth has become one of major topics related to corporate performance research.This paper based on previous research draws on the technological innovation theory and the theory of business growth. The paper collects data from small and medium-sized enterprises (SMEs) listed in Shenzhen Security Exchange. The paper, using factor analysis and stepwise regression analysis research methods, explores the relationship between technological innovation capability of SMEs and business growth.The conclusions of this paper:there is no significant relationship between the proportion of the technical staff of SMEs and corporate profitability; a significant negative relationship between R&D (technical innovation) expenses share and corporate profitability; a significant positive relationship between the number of patents per capita and the profitability of the enterprise; a positive relationship between the proportion of product sales revenue of SMEs' technological innovation (technical innovation) and the capability of expansion in the size of business.The paper also carries out an in-depth analysis on the results of the study, and discusses the research implications, the study limitations and the directions for a further research.