Abstract: This paper defines the low- and medium- technology (LMT) firms considering the firm level’s R&D intensity and then analyses the innovation pattern and innovation performance of LMT firms in comparison to mid-high and high technology firms based on the data of 2009 Chinese manufacturing innovation survey. The results find that: firstly, there is a high heterogeneity of R&D intensity in each sector. A considerable proportion of high R&D intensity firms exist in LMT sectors, and there are a considerable proportion of low R&D intensity firms in mid-high and high technology sectors. Thus, the innovation patterns differ according to the firm level’s R&D intensity besides the difference of sector. Secondly, the product innovation performance of LMT manufacturing firms is poorer than that of mid-high and high technology firms. There is no significant difference between LMT manufacturing firms and mid-high and high technology firms at service innovation performance. However, it seems that LMT firms perform equally well and in some respects even better at process innovation comparing with the mid-high and high firms.

Key words: low-and medium technology firms, innovation pattern, innovation performance, product innovation, process innovation