Abstract This paper reviews past studies on the effects of political institutional resources (PIRs) and the innovation performance of small and medium IT enterprises (IT SMEs). Firstly, it summarizes the existing theoretical studies on PIRs and those on the relationship between PIRs and firm innovation. Secondly, it reviews the extant empirical studies and makes comprehensive analysis from three perspectives of technological innovation policy system, macro-level of the technological innovation subjects and the micro-level of the technological innovation subjects. Finally, it identifies several research gaps on the future research direction including situational factors of developing countries, segmentation of institutional resources types, introducing effectuation logic theory and focusing on institutional interaction etc.
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