To achieve successful technological innovation, small and medium-sized enterprises (SMEs) must not only engage in their own technology development efforts but also effectively establish technology cooperation networks with various external organizations. From this perspective, this study empirically analyzed how technology cooperation activities with external organizations affect technological innovation performance among SMEs in the Busan region, and how these relationships differ depending on the firm's absorptive capacity. Data were collected through a survey method, in which 827 questionnaires were distributed to small and medium-sized manufacturing firms in the Busan region with 30 or more employees, yielding a total of 101 returned questionnaires (response rate of 12.2%), of which 90 were used for the actual analysis after excluding incomplete responses. The results indicated that the more technology cooperation relationships a firm establishes with external companies and institutions, the greater its technological innovation performance. Furthermore, as the level of a firm's absorptive capacity increases, the positive effect of technology cooperation activities on technological innovation performance is further amplified.