Researches On The Impact Between Independent Innovation Capability Of SMEs And Financial Performance

Tech-Typed and middle sized enterprises (SME) is not only the core strength ofindependent innovation, but also an important force to solve social employment,promote the adjustment of economic structure. However, because the weakness in assets,management and external environment, Tech-typed and middle sized enterprises arefacing serious challenges for survival and development. Independent innovation is thecore powers to assure SMEs obtain competitive advantage. Exploring the influencebetween independent innovation and financing performance, studying how to increasethe enterprises financial performance, is of great significance to accelerate thedevelopment of Tech-typed and middle sized enterprisesThis paper selected representative116tech-typed and middle sized enterprises onthe GEM from2010to2012. According to the characteristics of the independentinnovation capability of SMEs, select a series of financial indexes can reflect the inputcapacity of independent innovation, manufacturing capacity, innovation output andenvironmental impacts and then try to get a comprehensive innovation ability indexthrough principal component analysis, finally, make a further empirical research on thecapability of independent innovation and financing performance. Empirical studiesshow that, independent innovation has significant correlations with the scale offinancing, as well as capital utilization rate, but has a negative correlation withfinancing cost.I hope the results of this study will provide reference for the development ofChinese SMEs, and provide suggestions to the increasing of SMEs financingperformance.