Firm Size and Innovation Performance: An Empirical Study from Chinese Photoelectron Industry

Using photoelectron firms as samples, the impacts of firm size on innovation performance are examined. The number of patents applied, the sales percentage of innovative product and the degree of novelty of product are chosen as the indexes to measure innovation performance. The statistical results indicate that, as far as the relationship between firm size and innovation performance in the photoelectron industry is concerned, the findings show their relationship is different as the measurement index of innovation performance is different. So we cannot simply say that large firms are more innovative than small firms or small firms are more innovative than large firms. The paper also proves that it is necessary to study the relationship between firm size and innovation performance according to per industry. This study still finds that it is important to consider a broad range of innovation measurement indicators and use these indicators to measure innovation performance respectively in order to more accurately capture the factors influencing innovation performance in a firm.