Studies On The Relation Among SMEs Listed Firm’s Innovation Input, Innovation Output And Firm Performance

Listed companies in SMEs stork market is the representative of China’s small and medium-sized innovative enterprises, we carried out a systematic study of this group’s the innovation activities, on the one hand, from the view of academic research, academic empirical research is our the microstructure main innovation activities complement; on the other hand, from the practical significance of view, we also provide useful lessons to improve the capability of independent innovation of different types of enterprises in China.In this paper, we constructed a analysis framework for microscopic main’s innovation input, innovation output and firm performance based on the CDM model. The model make the innovation input, innovation output and firm performance indicators integrated in a model.We collected the relevant data from236firms before2008listed in SMEs stock market, and published patent by the State Intellectual Property data. Combined with the situation of China’s firm, using the model, we empirical analysis the relationship of innovation input, innovation output and firm performance in enterprise level based on this model. In addition, we selected three factors of firm size, proportion of the quality of the labor force and government grants which generally be thought the impact of innovation activities as control variables, and analysis these factors effect on innovation input, innovation output and firm performance.In the paper, we analysis the innovation activities of the full sample, and research further in-depth divided sample into The strategic emerging firm and the non-strategic emerging firm, mainly receive the following conclusions:Firstly, innovation input positively affects innovation output, while innovation output has a significant impact on firm performance. Among factors affecting innovation activities, firm size has a positive effect on innovation input and firm performance, but adversely affects innovation output; government subsidies improve the firm’s innovation input and innovation input. There exists a positive relationship between labor quality and firm performance, but there exists no relationship between labor quality and innovation input.Secondly, in regard of the strategic emerging firm, innovation input positively affects innovation output, while innovation output has a significant impact on firm performance. Among factors affecting innovation activities, firm size has a positive effect on innovation input and firm performance, but adversely affects innovation output; government subsidies improve the firm’s innovation input and innovation input. There exists a positive relationship between labor quality and firm performance, but there exists no relationship between labor quality and innovation input.Thirdly, in regard of the non-strategic emerging firm, innovation input positively affects innovation output, while innovation output has a significant impact on firm’s growth performance of Tobin Q, but not impact on firm’s profitability performance of OPE. Among factors affecting innovation activities, firm size has a positive effect on innovation input and firm performance, but had not affects innovation output; government subsidies improve the firm’s innovation input and innovation input. There exists no relationship not only between labor quality and innovation input but also between labor quality and firm performance.From the results of this study we can see, firms should increase innovation input, improve innovation output and increase firm performance; In addition, due to the strategic emerging firms attach importance to technological innovation, innovation output have effect on firm performance in the short term; but the non-strategic emerging firm’s innovation output will affect the firm performance in the long term. So the different firms should choose the right innovation strategy.