A Study of Policies for Improving the Technological Innovation Capacity of Small and Medium-Sized Enterprises

Taiwan's “government innovation policy resources” help enterprises expand innovation capacity by providing financial rewards, tax deductions, personnel training, and polities and facilities that encourage innovation. The results of this study show that “government innovation policy resources” is significantly and positively correlated with “technological innovation capacity” and “firm operating performance,” while the latter two are also positively correlated. Among the “government innovation policy resources,” financial rewards and personnel training have the most influence on expanding innovation capacity, which in turn benefits the enterprises' ability to develop better products and have a positive effect on its operating performance and profitability.