Notice of Retraction: Impact of Technological Innovation Capability on Business Growth: An Empirical Study for Small and Medium-Sized Enterprises

Abstract

Innovation capability driven by technology has been considered as a key factor for business growth. While numerous studies pay attention on this object, the relation between technological innovation and the growth of Small and medium-sized enterprises (SMEs) still requires clarification and further understanding. The aim of this paper is thus to clarify and better investigate the impact of technological innovation capability on the growth of SMEs by establishing conceptual framework, distinguishing driving factors from various innovation attributes, and testing statistics models that integrate these principle factors. Using factor analysis and hierarchical regression based on a national sample of 110 SMEs for the period 2004-2008, this study reveals interesting results. First, the imbalance is obviously among input, output, and basis of innovation. Second, five categories of driving factors contribute significantly to business growth. Third, increasing innovation input is the main pattern of improving technological innovation capability at current stage. The results of this study suggest that improving innovation efficiency, cooperating with different partners, and creating innovation network are necessary for the growth of SMEs.