Abstract

This study, utilising data drawn from a sample of 133 China's high-tech Small and Medium-sized Enterprises (SMEs), examines the effect of inter-firm technological cooperation on product innovation. The framework builds on the emerging strategic management theories, including resourced-based view, knowledge-based view and dynamic capability view of the firm. Results are concluded as: Firm size, coupled with cooperation, has significant influence on patent creation; the success rate of cooperation increases as the number of cooperative projects increases; more firms engage in cooperative relationships, better firms perform in sales and profitability.

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