On Innovation Mechanism Of Private Enterprises

Private enterprises have been one of important part of our country's national income during two decades and would probably soon become the driving force of Chinese fast growing economy. But it has been bothered by being smaller, weak and short-life. By stating its concept as well as its status quo, the article proposes that the innovation should be its motive force. Private enterprises must innovate actively, but it is not enough to realize the importance of innovation and master the method of innovation, enterprise innovation is in progress under certain conditions and circumstances. And the innovation mechanism is innovation's key.On the base of analyzing innovation mechanism's theory, the article constructs the system of private enterprises' innovation mechanism which is made up of dynamical mechanism, operational mechanism and growing mechanism. By means of analyzing private enterprises property right, corporation's frame and supervising pattern one by one, the article puts forward advice on how to set up innovation mechanism in detail, including property right's innovation, incentive mechanism's innovation, organizational innovation, etc. innovation of organizational structure and formation. In addition we should foster entrepreneurial spirit and innovation culture, broaden the channels of funding, and strengthen the information management.