Creating market value is an important issue for companies in different life cycle stages. However, while innovation capability plays an important role in the process of creating market value, few studies have examined innovation capability's role in the value creation process under different life cycle stages. This research thus focuses on comparing innovation capability's contribution to the value creation process in the growth, maturity, and stagnant stages. In this article, a model of the interrelationships among employee capability, innovation capability, financial performance, and market value is developed and tested using data on Taiwan's information technology industry. The results generally support the model, though some interesting similarities and differences are found between the three stages.