An Empirical Study On The Relationships Between Technological Innovation And Growth Of SMEs

In recent years, small and medium-sized enterprises (SMEs) have a rapidly increasing position in economic development, and play an important role in national economy and social development. Nevertheless, small and medium-sized enterprises are lack of ability of sustainable development and long life because of enormous factors. The sustainable growth of SMEs has become an important subject for modern enterprises. Technological innovation has been considered as one of the important factors for the growth of SMEs and is the motive force for the firm development. It is very necessary to research the relationship between technological innovation and growth of SMEs.Based on the results of domestic and international research, this paper find that most research is about the relationship between R&D results or input and the growth of SMEs, without considering the relationship between other factors of technological innovation the growth of SMEs, but also did not consider the different relationships between technological innovation and firm growth in different life cycle stages. Based on the innovation performance and innovation process, this paper divide technological innovation into five elements, resource input, R&D capability, innovation trend, innovation decision and manufacture capability. An empirical study on the relationship between these factors of technological innovation and the growth of SMEs was conduct in different life cycle stage.Based on the sample of328SMEs in Liaoning Province, this paper analyses statistical data by using structural equation modeling. The results of model demonstrate that technological innovation has different influences on the growth of SMEs in different life cycle stages. There is an increasing influence between resource input and the growth of SMEs in different life cycle stages. Resource input has a negative influence on the growth of SMEs in the entrepreneurial stage, and has no significant influence in the development stage, and has a positive influence in the maturity stage. In different life cycle stages, R&D capability and manufacture capability have a great positive influence on the growth of SMEs. Innovation trend and innovation decision have a positive influence in the development and maturity stage, have no significant influence in the entrepreneurial stage. Enterprises may make technological innovation strategy for further development based on the results of this research.