Research On Independent Innovation For Enhancing The Core-competitiveness Of Medium And Small Private Enterprises

Through thirty years'rapid development after the reform and opening up of China, as one of the most important parts of national economy, private economy sector has witnessed its continuous quantity development, ever-expanding scale, enhancement of innovation ability and the obvious promotion of both economy and society. Medium and small private enterprises (SMEs) have been playing a relatively important role in terms of employment problem, tax promotion, bridging the rich-poor gap and advancing the harmonious development of society and so on. The study of innovation ability has a great significance for not only the enhancement of national economic strength and core-competitiveness but also the perfection the independent innovation system of our own. Firstly, both inside and outside factors of SMEs and the dynamic mechanism for the promotion of independent innovation have been deeply and systematically analyzed and summarized the definition of SMEs and its functions and status. Starting from the definition of core-competitiveness, this article has stated the features, components, cultivation and the promotion of independent innovation. The development of innovation theory has been illustrated in this theory, then the concept and characteristics of independent innovation have also been summarized and included in this thesis. This article has also summarized the characteristics of independent innovation of SMEs and discussed the relation between independent innovation and core-competitiveness. According to the principles of the set up of index system, the evaluation index system of independent innovation ability for SMEs has been built, and the method of principal component analysis is adopted to build up the evaluation model which is the base of empirical study. Five medium and small private enterprises have been chosen as the sample, and the comprehensive evaluation of independent innovation ability is divided into four modules:"potential independent innovation ability","investment ability of independent innovation","performance of independent innovation","environment for independent innovation". Based on the results of empirical analysis and the specific condition of Henan province, the promotion method of independent innovation for SMES in Henan province has been put forward in this article.