Since the Open and Reform in China, Zhejiang Province has led a fast speed in economic development, to which the Mechanical Industy contributes a lot. Although there exist large-sized enterprises in Zhejiang Mechanical Industry, most of the mechanical enterprises in Zhejiang Province are SMEs, which reside in the young stage of endogenous innovations, and stay in the bottom of the international production chain. To challenge this handicap, the mechanical SMEs should find out the appropriate innovation approaches according to their own characteristics.This paper begins with the innovation theory summarizing and puts forward the concept of endogenous innovation. Then it analyzes the present condition of the SMEs in Zhejiang Province and in Zhejiang Mechanical Industry by data and theory study, and gets a conclusion that most of the SMEs are still very weak at endogenous innovations. In the following part, this paper analyzes the endogenous innovation level of the mechanical SMEs in Zhejiang Province, and evaluates the endogenous innovation capacity of mechanical SMEs in each subdivision by using the method of principle components factor analysis. In the last part, the author puts forward several endogenous innovation approaches with some case studying and gives suggestions to mechanical SMEs in each subdivison. |