The Influence Of Government's Supportive Actions On SME's Innovative Performance, And The Role Of Service Intermediates

Since China's reform and opening, with the tide of market impact, manufacturing enterprises and technology enterprises have acquired a chance of rapid development, and have played an important role in economic growth. Especially those Small and Medium Enterprises (SMEs), as the majority of market participants, have contributed a lot for technology and product innovation, because of their flexible mechanism and much energy.Nevertheless, SMEs are always in a weak position in market competition since they commonly lack of resource, and their development should be supported by the government. The government should create a good environment by means of various supporting systems and policies to facilitate SMEs' innovation ability, and to help them find chances concerning innovation cooperation and commercialization. Efforts should not be confined in law, finance and tax policies; certain public sectors should actively serve the SMEs, inform them of preferential policies and help them win innovation projects sponsored by the government.Concerning the innovation mechanism, we studied the impact of SMEs' relationship with service intermediates (including technology service firms, accounting and finance service firms, law firms and talent hunting firms), and have empirically demonstrated that these relationships can effective improve their innovative performance. We also believe that, the government's supportive actions can come to effect through this mechanism; therefore, managers of SMEs should pay more attention to relationships with service intermediates.