Research On The Technological Innovation Of SMEs

Nowadays the technological innovation has been dominant part among enterprises. The Chinese government has even regarded the aim to establish technological innovation systems with enterprises as the main body as one of the tasks of the country's 11th Five-year Plan. Therefore, to analyze and study the enterprises' technological innovations is not only of the academic value, but also of important practical significance.Enterprises' technological innovation system is a dynamic and systematic process that evolves continuously as a creative process in enterprises, including external environment impact and endogenous mechanism. External environment consists of laws & regulations, industrial policies, and financing facilities, while the endogenous mechanism consists of how to react to market and maximize the profit, corporate culture and management ect.The paper is divided into six parts. The first part explains why this topic is chosen and makes literature review related this field. The second part evaluates the motivation of technological innovation, makes literature review of technological innovation, and proposes how to choose policies of this, and concludes that capital and institution are of importance of this process. The third part explains conceptions concerning SMEs' innovation, including that confining SMEs, assessing the strategic importance and choices concerning these. The fourth part discusses external and internal factors affecting innovation. The fifth part makes suggestions based on above four parts. The last part is conclusion.