Abstract: Although design has been taken as another driving force in enterprise`s innovation in recent studies besides technology push and market pull, there has little research effort to explain the interactive effects between three driving forces on exploratory and exploitative innovations of enterprises. Drawing on the Resource-based View, this study investigates the joint effects of technological capabilities, market capabilities and design capabilities on exploratory and exploitative innovations in Technological Small and Micro Enterprises (TSMEs) based on the two-stage data collected from 357 TSMEs operating in Foshan in Guangdong Province. The results indicate that the interaction between technological and market capabilities both has a significant positive influence on exploratory innovations and exploitative innovations in TSMEs. In addition, technological and design capabilities have a significant positive joint effect on exploratory innovations, and market and design capabilities have a significant positive joint effect on exploitative innovations in TSMEs. Moreover, the results of the three-way interaction testing suggest that technological capabilities, market capabilities and design capabilities only have complementary effect on exploratory innovations instead on exploitative innovations. The findings underscore the difference of interactive effects between three capabilities on exploratory and exploitative innovations, which generates new insights for the coupling model of innovation.