China Product Innovation Study

Small-medium-sized enterprises are the economic core of a nation. If we regard large-sized enterprises as the economic backbone of a nation or a region, then small-medium- sized enterprises constitutes the economic blood and flesh. Statistics show that small-medium- sized ones consist of over 99.8% of the total enterprises in China with a total output of more than 60% of GDP in terms of final products and service value. Moreover, more than 80% of job opportunities, 65% of patents, 75% of technical innovation and 80% of new products come from small-medium- sized enterprises.But, in China, the development of small-medium- sized enterprises has shown insufficiency as a whole, due partly to the limitation of the inherent features of their own, and mostly to the external influencing factors of inadequate capital, difficulties in financing, lack of innovative personnel and lack of support of policy system and service system.Based on relative theories on product innovation and the study on the present situation and problems small-medium- sized enterprises have encountered and case study on Shanghai Aowei Company, this thesis tries, with the help of foreign successful experiences, to offer the countermeasures and suggestions for the product innovation of small-medium- sized enterprises in China.