Investment allocation in innovation resources in open innovation: a research in Chinese power equipment manufacturing firms

This study has examined the connection of activities in innovation related resource management and the profit status due to technological innovation based on a sample 219 firms in Chinese power equipment manufacturing industry. We have taken correlation and regression analysis to test the impact of different activities on 3 types of innovation. The result has provided us with the key activities which have the most significant impact on innovation performances, in which we found a strange mode of technology introduction employed by the firms which results from the capability and resource shortage of the firms. In reference to the result, we have made propositions to help Chinese power equipment manufactories in achieving higher efficient technology introduction and radical innovation promoted by market pull.