The Aim of this study is to find out the characteristics of SMEs, that has higher success ratio of technology development and extract implications not only for practitioners but also government policy. The Study used cross-sectional data of 2,807 SMEs in manufacturing sector from “Survey on SMEs Technology & R&D 2011” which was conducted by Korea Federation of Small and Medium Business and Decision Tree Analysis as a methodology. The result shows that Firm should develop R&D operation strategy and action plan with considering the level of industry`s technology. Firm in high and medium technology must secure an exclusive R&D department and over 3% R&D expenditure on total sales, while in low technology must secure IP protection law and equipments for R&D in the firm. For SMEs supports by government, it can provide a guideline to evaluate which firm will use government`s support more effectively and efficiently, when compare the characteristics of target firms and technologies with this study results.