Since　firms　are　the　entities　of　technological　innovation　and　basic　research　is　the　source　of　technological　innovation,　encouraging　firms　to　conduct　basic　research　has　gained　increasing　attention.　Using　Huawei　Technologies　as　a　case　study,　this　study　employs　a　vector　autoregressive　(VAR)　model　and　relevant　data　of　the　target　firm　from　2000　to　2019　to　investigate　the　relationships　between　basic　research,　technological　innovation,　and　firm　performance.　According　to　the　findings,　basic　research　has　a　positive　effect　on　technological　innovation　but　has　a　significant　lag;　technological　innovation　has　a　positive　effect　on　firm　performance　and　shows　significant　periodicity;　while　basic　research　has　a　positive　effect　on　firm　performance　and　a　procedural　nature.　On　this　basis,　we　put　forward　some　enlightening　suggestions　for　firms　to　carry　out　basic　research.　©　2022,　Science　Press　(China).　All　rights　reserved.