With the fierce competition in the global market, the Chinese government pays more and more attention to the innovation of small-medium enterprises (SMEs), especially to the innovation activities of high-tech SMEs. The research concludes the model-factors influencing the innovation of SMEs, which is based on the past literature research and collect the primary information through the face to face interview. In this research, 50 employees from 10 SMEs around Suzhou, including 10 officers from the government, were interviewed. The research result indicated that the key factors influencing the innovation of SMEs are government incentive policies, entrepreneurship, competition, and demand from the market. And based on the research result, the paper constructs the SMEs innovation model (SIM), which would be used for further research.
|Number of pages||30|
|Journal||International Journal of Economics and Business Research|
|Publication status||Published - 1 Oct 2021|
Bibliographical noteFunding Information:
SMEs need a large number of talents, material and financial resources in the stage of technology and innovation development, and in the later stage of innovation or production. Also, if the SMEs are continuing to lack of resources and financial support, it is difficult for them to make profits from forming patents or products, which would not be conducive to the development of high research and innovation. The government’s supplementary policies send a signal to the SMEs, which makes them have a strong ability to raise funds, but this cannot fundamentally solve the financing problem for SMEs. SMEs also need to get more financial support from the financial markets. And a good financial environment created by the government can reduce the information exchange cost between investors and enterprises. In favour of SME financing, only when the financial environment and the government supplement are combined, it can better solve the problem of financing SMEs, and raise more funds for SMEs to carry out technological innovation.
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