The relationship between corporate innovation and performance

Abstract

The purpose of this research is to examine the integrated relationship among R&D capacity, R&D quality, and corporate performance. The information technology (IT) industry is a knowledge-based industry. Its character differs from other industries. Sample selection of this research is from IT companies listed on the Taiwan Stock Exchange. We use the Structure Equation Model (SEM) to test the hypothesis. The results indicate that R&D capacity is positively associated with R&D quality. It means that the size of R&D capacity will influence the output of R&D quality. R&D quality is positively associated with firm performance. It means the power of R&D quality (patent citation impact) influences the accounting and market performance of the company.

Keywords:

• R&D capacity
• R&D quality
• corporate innovation
• corporate performance

Notes

1 CII is the patent citation number during the last 5 years/citation number of all patents in the field during the last 5 years.