Purpose:　The　purpose　of　this　study　was　to　measure　the　innovative　performance　of　a　managed　and　owned　mainland　Chinese　family　business.　The　objective　of　the　study　was　to　assist　an　inheritor　and/or　successor　of　a　family　business　and　to　find　management　problems　in　innovative　activity.　Design/methodology/approach:　To　improve　the　innovative　technical　efficiency　(TE)　of　the　business,　the　study　offers　methods　that　enhance　the　allocation　of　resources　to　provide　outcomes　that　improve　the　core　competitiveness　of　the　business　and　realize　the　sustainable　development　of　the　business.　Innovation　performance　is　a　well-organized　and　efficient　way　of　turning　innovation　input　into　innovation　output.　Human　input,　research　and　development　expenditures　measure　innovation　input.　Patent　output　and　other　outputs,　which　include　total　labor　productivity　and　asset　liability　ratios,　measure　innovation　output.　To　complete　the　study’s　task,　the　innovative　performance　of　46　Chinese　listed　family　run　and　owned　businesses　were　evaluated　based　on　the　data　envelopment　analysis　and　the　Banker,　Charnes　and　Cooper　model.　Findings:　The　results　of　the　study　show　that　the　overall　TE　of　innovation　in　a　Chinese　family　run　and　owned　business　is　low　and　that　the　returns　to　scale　of　most　such　businesses　is　decreasing,　and　furthermore,　that　the　overall　innovation　performance　of　is　low.　Originality/value:　The　implications　from　the　study　further　suggest　that　for　business　efficiency　and　increased　profit　a　beneficiary　of　a　Chinese　family-owned　business　should　optimize　the　firm’s　size　and　resource　allocation.　©　2019,　Emerald　Publishing　Limited.