Globalization provides all business players with equal threats as well as equal opportunities at the same time. Information can be obtained with low cost through wire, wireless technology, learning by themselves and partnership of strategic alliance. High technology and special know-how may take more time to be built than buy. Now the global market is open and flat. Competition which normally erodes profit of firms is taken for granted and can’t be avoided. Joseph A. Schumpeter believed that entrepreneurs would do “creative destruction” to avoid from stationary state of economy and to seek new profit opportunities, and he considered the concept of innovation to be new products, new method of productions, new markets and environment which can change rules of the game of business players. Many Korean firms have jumped into international competitive markets to expand their presences to pursue both profit and growth. Creating competitive advantages by low cost or differentiation of strategy and products in the competitive business environment are very important factors. Innovation is one of the competitive advantages. Innovation may be categorized into three parts; technology, manufacturing process, strategy and marketing. Here in the thesis, I take technology as vehicle of comparison, and use the number of granted patents as the degree of technological innovation. This thesis will make comparison among the firms which have more number of patents and less number of patents to see if technological innovation contributes better financial performances. Patents are used as barrier against new entrants and defending vehicle in the time of patents conflict with market competitors. This thesis will analyze and verify whether the more a firm is innovative in technology, the better financial performance it may enjoy in the severe competitive environment.