This paper investigates how small and medium-sized firms deploy R&D, market orientation, and external network for successful innovation. This paper suggests that R&D have significant effects on the innovation of small and medium-sized firms and that market orientation and external network moderate the relationship between R&D and innovation.
To test the hypotheses, data were collected from the small and medium-sized firms. The survey data of 117 firms were collected and integrated as the empirical base for testing the hypotheses.
This study used two R&D indicators: One is R&D expenditure divided by sales, and the other is the ratio of R&D personnel to total employee. In addition, this study used three control variables: firm size, firm age, and industry sector.
Hierarchical multiple regression analyses were used to examine the hypotheses. Major results are as follows: Firstly, when R&D as well as control variables are considered, R&D had significant and positive effects on the innovation. This result implies that R&D is an important means by which small and medium-sized firms can promote innovation.
Secondly, the interaction between R&D and market orientation was not significantly related to innovation. This result was not consistent with existing studies.
Thirdly, the interaction between R&D and external network had a negative and significant effect on innovation. This result supports for the moderating effects of external network on the relationship between R&D and innovation.
Fourthly, the interaction among R&D, market orientation, and external network had a negative and significant effect on innovation. This result supports for the moderating effects of market orientation and external network on the relationship between R&D and innovation.
In conclusion, this study implies that external network should be considered as a moderator in order to capture important differences on the relationship between R&D and innovation.

The focus of this research is to reveal the internal venture growth that stems from the driving force of opportunity realization and the role of external support. In doing so, we theorize the entrepreneurial process of interaction between entrepreneur, resource and opportunity. The process of venture growth by opportunity realization means to resolve a number of problems and obstacles on the way to opportunity. From the entrepreneur's viewpoint, there is an internal driving force that channels and sustains entrepreneurial activities for opportunity realization. He or she needs various kinds of resources that is not endowed initially, so that external resources at the relevant situation is very crucial in venture growth. This driving force that has two dimensions: drive and directivity. The role of entrepreneurial intent is to channel entrepreneurial activity to resolve problems and to continue until the opportunity is realized. The hypotheses are based on these effects of entrepreneurial intent and are tested with longitudinal survey data. The results may shed light on designing and implementing the external support system for entrepreneurial economy. Practical and academic implications are discussed with limitations and further research.

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