Abstract: In the age of economic globalization and transition, China firms are facing new opportunities and challenges. Especially, the firms in high technology industries are urgent in need to change the development model and enhance the function of innovation driven to firm growth. Therefore, the importance of firm intellectual property development and construction of their capacity has been reached unprecedented heights. And, study about firm intellectual property capacity become a important theoretic problem. In the paper, we have discussed the relationship mechanism among firm intellectual property capacity, the construction of intellectual property capacity and the firm growth. And, internal and external factors affecting on firm intellectual property capacity have been analyzed. The empirical study using 103 China listed companies of computer application industry in Shanghai and Shenzhen Stock Exchange market found that there is significant positive relationship between firm intellectual property capacity and firm growth. Firm openness, technological level and input level are main internal factors affecting on firm intellectual property capacity. On the other hand, regional intellectual property protection degree , industrial openness, regional technological level are main external factors affecting on firm intellectual property capacity.

Key words: Firms&rsquo, growth