Abstract：This paper develops a model,based on the theory of cooperation and competition,to clarify the downstream relationships and interactions that contribute to company core competence.Results of SEM analysis from 233 firms support our argument completely.Results show:Downstream integration is reinforced by cooperative goals rather than competitive goals;And then this type of integration has a significantly positive impact on the exploratory innovation and exploitative innovation of firms;These relationships in turn contributes to core competence.Technological turbulence significantly moderates the relationship between exploratory innovation and core competence positively.And it plays a negative moderator role on the relationship between exploitative innovation and core competence significantly.
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