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The R&D and innovation of industries are the key factor of influencing future competitive advantage. In this study, we try to combine three variables that affecting the "Innovative Power", including R&D Investment Fee, Innovation Number and Sales Revenue, and define the concept of " The Circulation of Innovative Power". It means that the R&D leads to innovation, then innovation affects sales revenue. Besides, in order to compare the difference of Innovative Power of industries, we propose a " Combined Index of Innovative Power". It consists of three " single index" including "R&D Investment Index", "Innovation Index", and "Sales Growth Index". It can provide the firms a judgement of its strength or weakness in innovation in their own industry. Finally, limitations and suggestions for future research are proposed.
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