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This paper studies the effect of government research and development (R&D) subsidies and political relations on the innovative activities of technological small and medium-sized enterprises (SMEs). Moreover, the technology innovation path of SMEs is an important issue related to government R&D subsidies. This paper explores these effects using multiple case studies. Through case analyses of four biological pharmaceutical enterprises, we found that first, technological SMEs that receive adoi:10.4236/ib.2013.53b022 fatcat:ohgpqptgifholgkc2qi3ui4is4