Technology Alliance & Small And Medium Enterprises Technology Innovation Study

China small and medium (S&M) enterprises are developed gradually with the progress of China reform and open policy. With the past more than 20 years development, China S&M enterprises have created large amount of job opportunities, which in great certain reduced the heavy job pressure and turned in large amount of tax, created huge social wealth, which played an most important role in China national economic development and China manufacturing industry's development. Although China S&M enterprises' competitiveness has been improved greatly, and also gained certain competitiveness in global market, the excellent performance of China S&M enterprises are still depends on China "cheap labor cost". At present, due to the technology environment, capital, human resources factors, China S&M enterprises are still in such condition as low technology innovation level, deficient R&D investment, and slow products upgrading speed etc., which become the main factor obsessing China S&M enterprises' competitiveness. Through interpreting China S&M technology innovation condition and problems existed in technology R&D and innovation management, and analyzing Yutong Heavy Industries' choice of technology alliance to cultivate future "star" business, mechanism of partner choice, benefit allocation, risk prevention & guarantee, and technology innovation capability improvement, the thesis tries to explore how China S&M enterprises can efficiently develop technology through technology alliance. Through documents researching, the author didn't find any articles have studied how China S&M enterprises can improve their technology innovation capability through seeking foreign technology collaboration to establish technology alliance, which is the author's innovative point.