The Evaluation Method Research About Product Innovation Risk Of Small & Medium Enterprises (SMEs)

SMEs play an important role in national economy and social development of our country. Product innovation is the main method of existence and development in modern market environment for the SMEs, and is also the basic way to handle competition, develop market and realize development. Due to the localization of SMEs, Such as they have not build product innovation project mechanism, lacking of the product innovation project drive; they are in the small scale, shortage of financing and economy instability, having no capital to devote in product innovation; the whole SMEs have low diathesis, lacking of the ability person and techniques, and the potential to product innovation project. Product innovation of SMEs is full of risk and uncertainty. But nowadays, the hysteresis of the risk evaluation theory has seriously restricted the SMEs'development of product innovation. Therefore it seems considerately important to set up the system and methods of risk evaluation of product innovation project which could fit our country's reality, so the SMEs need the new risk evaluation methods of product innovation to make all al1-round risk evaluation of the product innovation project in the SMEs.Firstly, this paper analyzes the last research trends of evaluation method of SMEs'product innovation project risk at home and abroad, which is to understand the research background. It analyzes the concept of innovation, the development of product innovation project theories, the putting forward of risk evaluation. It makes the developing skeleton of risk evaluation theories clear. These lay theoretic foundations for the research. The chapterⅡin this paper studies through a comparative analysis between Large and SMEs, look into the competitive edge of the SMEs'product innovation characteristic and their model, and pointed out the model choice of different scales of enterprise differentiate from each other as well as the stages of these enterprises development. On this basis, the SMEs made available at this stage of the two product innovation models, that is initiating mode and cooperating model. Through analysis the characteristic and model of SMEs'product innovation project, an index system is established for risk evaluation which could fit our country's reality in chapterⅢof this paper, using BP neural network to establish evaluation model of product innovation project in the SMEs, through SMEs'project to make empirical research and sensitivity analysis to find out the key risk factors for the risk response strategy to provide the basis.The research on evaluation method of SMEs'product innovation project risk is a process of gradual and accumulation, establish the model need a lot of empirical testing and further revision. Because of the time, conditions, sources of information and my ability limit, such as each model lacking of the data validation and detailed case analysis and so on. All of these shortcomings are damaged the paper's scientific and persuasive, so the conclusions of this paper need further analysis and testing in future research and practice.