A study of the relationship between R&D capability and innovation performance based on high-tech firms in optics valley of China

As a central part of innovation, R&D has played a key role in affecting firm's innovation performance. In the perspective of resource-based view, this paper comprehensively establishes the framework of R&D capability, and conducts an empirical research to explore the relationship between R&D capability and innovation performance of firms, combining with the data from innovative survey of "Optics Valley of China" in 2006. The finding proves that innovation performance is closely related to the total improvement of R&D capability. The number of patents owned and experimental development input intensity are the most important factors significantly affecting firm's innovation performance. For large firms, the number of science and technology center is also found to be the R&D capability affecting the innovation performance, while the ratio of R&D personnel is surprisingly found to be vital for small firms. Hence, high-tech firms should establish feasible and appropriate strategies in terms of size and resources condition, in order to get better and quicker development. At the same time, the authorities should set down innovative incentive policies and patent regulations to build a harmonious environment.