Effects of technology innovation activity investments for small and medium manufacturing enterprises to business performance: Focusing on the southeast area in South Korea

For continuous growth and development of small and medium-sized enterprises (SMEs), their technology innovation activities are identified as the main variable. In this sense, the interaction among the principals of innovation activities within the company and the investments made in innovation activities is important in company's performance, but the importance of R&D is not equally high in all companies and all innovation activities don't lead to innovative performance. The domain of this study is small and medium manufacturing enterprises in the southeast area. In this study, the cost of technological innovation activity consists of 4 categories, including internal R&D, external R&D, introduction of capital goods such as machinery/equipment and software, and introduction of outside knowledge/technology. Achievements of company were classified as successful elements of technological competitiveness and those of manufacture improvement. As a result, the study revealed that cost of all technological innovative activity had nothing to do with the successful elements of manufacture improvement. When it comes to successful elements of technological competitiveness, cost of capital goods such as machines/equipment or software and that of external R&D activity had an effect in order. Base on the results of the study, the government should take action to improve technological competitiveness improvement of small and medium sized-manufacture enterprises, and manufacture improvement. It will promote a company's investment on technological innovative activity and enhance a company by preparing a system for commercialization, and further national development.