Research On System Innovation Of Private Enterprise In Gansu Province

Innovation is the core competence of the enterprise's sustainable development in the knowledge economy. This paper analyses the situations and the institution shortcomings at present. And according to the institutional constraint which private enterprise in Gansu province is facing, the author puts forward the theory of innovation in the three parts of property rights system, governance system and management system. This can make private enterprise in Gansu province really have clearly identified property rights, definite power and responsibility, scientific management, thus to advance the core competence of private enterprise. In the process of the innovation, the relations among them are property system is premise, governance system is assurance and management system is foundation. This paper is to discuss the private enterprises institutional shortcomings and innovation from these three parts.In part two, it analyses the relation between the development and the innovation, discusses the system choice and the necessity of innovation of the enterprises, analyses the bottleneck factor to limit the innovation, then to determine how to improve the innovation by the life cycle of the enterprises. In part three, it discusses the existing property rights problems of private enterprises and its way to innovate. That is clear property rights, reasonable structure and the liquidity. In part four, it discusses the shortcomings of the system and the way to solve the problem. And its goal is to establish governance structure pattern that fits the private enterprise's development and scale. In part five, it analyses the common characteristic and existing problems in the enterprises by using the typical cases, points out the way to innovate the management system of the private enterprises, that is to set up scientific management system, to pay attention to strategic management, to make effective combination of modern management system and family's ethic, to perfect decision making mechanism, to persist in human centered management. In the above four parts, the paper begins from the introduction of relative concepts, then analyses the foreign patterns and the existing problems in Gansu province's private enterprises, at last, presents correlative innovation suggestions.