Barriers To Endogenous Innovation In SME And The Corresponding Countermeasures

Small & Median Enterprises (SMEs) play an important role in national economy and social development of China, which are important sectors to make national economy development continuously and rapidly. Especially in Zhejiang province, where is one of most developed SMEs in China, the SMEs are playing important role in the promoting the high developing of Zhejiang economy, and account for the 99% in enterprise nubmber.Endogenous innovation is the basic to improve core competitiveness for SMEs. But there exist many obstacles in the process of innovation, some from interior of enterprises and other from exterior environment. So it is very practical and academic significance to analyze the SMEs endogenous innovation activities, investigate the barriers and study the policies and suggestions to improve the SMEs endogenous innovation capability.This article begins with the literature review. Firstly, based on the theory from domestic and abroad, it summarizes the concepts of endogenous innovation and SME, and describes the barriers to innovation. Secondly, it analyzes the present conditions of SMEs endogenous innovation in terms of survey in Zhejiang.In the following chapter, we investigate on SMEs' endogenous innovation activities in Zhejiang province and find out that the main barriers to the endogenous innovation are lacks of skilled personnel and appropriate sourse of technology and finance. Finally, based on the present descriptive analysis, this article carries out analysis to form groups of obstacles to innovation according to survey data. As concerned with obstacles found in the analysis, this article proposes the policies and suggestions based on a systems approach to improve the SMEs' endogenous innovation in Zhejiang province.