Study On Influence Of Government’s Innovation Policy On SMES’ Inovation

Innovation of SME is an inherent requirement to establish the Socialist Market Economy System. Strengthening the creative ability is a necessary condition for continuously pushing forward the reform of SMEs, the important content of establishing a modern enterprise system and also the key link for making good job of enterprise. However, SME innovation in China still has many drawbacks, which necessarily ask the Government to promote the innovation capacity of SME and thus improve its competitiveness, using innovative policies, and ultimately forming an effective innovation system and operational mechanism.First, from the perspectives of the government and SMEs, this article use Game Theory to analyze and make the government and SMEs as the participants of the SME innovation projects. Establish the game model between the government and SMEs, the game between the local governments and the game between the central government and local government in the innovation of SMEs. The conclusion shows that the government should design policies which are efficient for government’s action and also promote SME innovation.Second, the article select five SMEs innovation ability evaluation indexes of the Shandong Province, using SPSS and the factor analytic method, analyze the indexes, obtained the variance contribution of each factor and get the weights. And then calculate the standardized indexes of SME innovation indicators of each area in Shandong Province. Then weight and sum the indicators standardization index and get the comprehensive index of innovation capability of SMEs of each area in Shandong Province. From the results of calculation, we can further analyze the present situation and regional differences in the innovation capability of SMEs.Finally, the article use Panel Data Model and the regional data from2000to2009in Shandong Province to analyze empirically, and add the cross-term between government financial support and loans of financial institutions in the model to study the interaction between the two factors. The conclusion show that the leverage effect of government innovation policy for SMEs innovation takes a long time to emerge; government financial support and loans of financial institutions is interactive and the effect of government financial support on loans of financial institutions stimulate SME innovation.