A Study Of The Relationship Between Technological Innovation Capability And Profitability In High-tech Enterprises

The scientific innovation is power source of the enterprises. In theknowledge-based economy, enterprises must carry out technological innovation toobtain the long-term development. In the year of2008, the U.S. financial crisis,sweeping the world, made the world fall into economic crisis. In order to survive andmeet the expectations of shrinking demand, enterprises turn to the scientificinnovation. Now, more and more enterprises begin to realize the importance oftechnological innovation on enterprise survival and development. However, thehigh-tech enterprise is the main body of technological innovation, the research on therelationship between technological innovation and profitability of the high-techenterprises is important.This Paper based on the present condition of technological innovation of thehigh-tech enterprises, analyses the importance of technological innovation with theFactor of Production Theory, the Input-Output Theory, the Life-Cycle Theory and soon. This paper collects the study data from high-tech enterprises that listed inShanghai Security Exchange. This paper use stepwise regression analysis method toexplore the relationship between technological innovation and enterprise profitability.This paper has three collections: First, there is no significant relationshipbetween the number of patents and corporate profitability; Second, there is asignificant positive relationship between technological innovation expenses andcorporate profitability, and there is a significant positive relationship between thenumber of technological staff and corporate profitability; Third, there is a significantnegative relationship between the net of equipment asses and corporate profitability.The paper also carries out an analysis on the results of the study, and discussesthe research implications and the study limitations.