Public Policy Influence On Technology Innovation Level Of Small And Medium-Sized Enterprise

The small and medium-sized enterprises(SME) in developed countries find impetus to technology innovation through public policy in developed countries.Gaining lessons from these countries, in recent years, China has devised a variety of policies to promote the innovation level of small and medium-sized enterprises. The types of these public policies have covered financial, taxation, industry, science and technology and many other aspects of the policy system, which formed a support system to promote the innovation level of the enterprises. However, because of the complexity of situation in China, some policies have failed to satisfy actual demand of the enterprises, thus, a big gap lies between practices and expectations.Concerning the relationship between public policy and SME technology innovation level, the existing research results have revealed some limitations, such as lack of detailed categorization of innovation and limited research method.Accordingly, taking the relationship between the public policy and SME technology innovation level as the core research content, we carry out the research as follows:(1) Theoretical research was carried out on the public policy, which could stimulate technology innovation. The concept of innovation, continuous innovation and discontinuous innovation were defined, and three kinds of classical innovation theories were compared and contrasted. The characteristics and formation conditions of continuous innovation and discontinuous innovation were analyzed,and the incentive mechanism of public policy for the innovation activities of SME was expounded.(2) Statistical study was launched on the relationship between public policy and SME technology innovation level. The policy system of science and technology policy, fiscal policy, tax policy were constructed, and the differences of two kinds of innovation of SME were distinguished. The invention patent was selected to characterize discontinuous innovation. The utility model and design patent was selected to characterize continuous innovation. R&D full time equivalents,technology market turnover, and technology business incubator quantity were used to characterize science and technology policy. The fiscal expenditure and government procurement scale were researched on to characterize fiscal policy. The enterprise income tax, business tax, and domestic value-added tax were used to characterize tax policy. Empirical results show that fiscal policy and science and technology policy is Grainger reason to promote continuous and discontinuousinnovations of SME.(3) Based on the echo state network(ESN) model, the relationship of public policy and SME technology innovation level was researched on. In the training process, using an iterative precision as the mark, "science and technology policy", "fiscal policy", and "tax policy" were taken as the main element to determine the output state when ESN model became stable. The analysis results of ESN showed consistency of Grainger analysis results.(4) Based on the echo state network(ESN) model, prediction study was carried out to determine the relationship between public policy and SME technology innovation level. SME technology innovation was predicted when science and technology policy, fiscal policy, and tax policy were adjusted. Prediction results show that technology business incubator, fiscal expenditure on science and technology and government procurement have the salient effect for discontinuous innovation of small and medium-sized enterprises.(5) Based on the "economic innovation model", the significance of two kinds of innovation for the development of national economy was analyzed. Analysis results show that the continuous innovation and discontinuous innovation have a positive effect on the development of the national economy, and the influence degree of discontinuous innovation is greater. Accordingly, policy recommendations are proposed to promote science and technology innovation of SME.