Western Smes Capability Of Independent Innovation Formation Mechanism

Innovation contributes to the progress of human society, economic growth, as well as competitive edge of enterprises. With the era of knowledge economy, SMEs gain ground just as "grassroots" on the internet. Besides, hi-tech industries provide more opportunities for SMEs which have greater potential for the development of innovation, pushing forward the pace of innovation of the whole society. According to our country's enterprises innovation, it is necessary to promote independent capability as a strategy. SMEs in western China confront lots of problems during the process of innovation. It is urgent to solve the question—how to form and improve their independent innovation capability. Meanwhile it is hoped that the research could be useful for innovation and enrich the theory.Improving independent innovation capability of western SMEs is conductive to enhance enterprises' competitive power, relieve employment pressure, create economic dynamics, optimize industry structure, strengthen innovation ability of the area and build an innovative society. Firstly, the paper explores key factors of independent innovation capability on the basis of relevant innovation theories. Secondly, it explains connections, functions and structures of those key factors, discussing endogenous, exogenous and integration mechanism of independent innovation capability. Thirdly, the writer brings forward solutions for western SMEs, forming hypotheses model. Finally, the relations between independent innovation capability of western SMEs and innovation performance are demonstrated by setting up a structural equation model via questionnaire survey.This paper combines qualitative analysis with quantitative analysis, field research with theoretical study together. Independent innovation capability depends on the role of enterprises. However, due to long-term closure of western regions, and side effect of globalization, guide by governments is indispensable for western SMEs. Through structural equation model, we find that combination of enterprises' strategies with market strategy, the ability of information feedback, reasonable allocation of innovation input has more influence on western SMEs. Internal technology exchange, the ability of obtaining external technology and accumulation also has positive influence on independent innovation. Governments contribute to promoting innovation of western SMEs in three aspects:protection of intellectual property right, preferential taxation, innovation allowance or encouragement and reward policy. Merging together all beneficial ways could improve customer satisfaction degree, market share and profit margin so that it will bring intellectual property right and long-run competitive edge for western SMEs.