This paper investigates the impact of internationalization and intangible assets on the performance of Small and Medium sized enterprises (SMEs) in newly industrialized economies (NIEs). Examining a sample of 3,194 Taiwanese SMEs, we find that: (1) the relationship between internationalization and performance is characterized by an inverted U-shaped curve; (2) SMEs investing more heavily in research and development achieve greater gains in profitability; and (3) though the hypothesized linear relationship between advertising and profitability is not confirmed, further analysis indicates a U-shaped curvilinearity between the two, suggesting that a minimum level of investment is required if advertising is to be effective
