Internal Environmental Impact Factors Enhance The Innovation Capacity Of Jiangsu SME Research

The development of SMEs has occupied an important position in the growth of China's national economy, it also plays an active role in stabling the economic growth, promoting the international trade and echnological progress, reduction of unemployment which can not be replaced.At the same time, innovation is the source of SMEs'growth, the steady and healthy development of SMEs can not do without a key driver of innovation. The innovation of SME is influenced by the external environment. such as financial, fiscal, legal and macroeconomic policies, but most important, it needs to foster continued innovation from the internal ability.Based on the existing research of environment and innovation. this paper tries to research the internal environmental management of SMEs, how does the internal environment enhance the innovation capacity of SMEs effectively.This paper argues that if a company has the entrepreneurial spirit of innovation and accurate and strategic capabilities, excellent corporate culture, abundant talents, co-operative, flat, flexible organizational structure, we can say that the enterprise's internal environment is helpful to enhance the innovation capability.This paper can be divided into six parts, of which reads as follows:based on the review of the innovation and the internal environment, the relevant concepts are defined, the first part analysis the elements of the internal environment and the formation mechanism; the second part analyzes the theoretical principle based on innovation theory, resource theory and organizational aspects of evolutionary theory; the third part analysis the elements and the formation mechanism of the internal environment, and shows the impact on business innovation; the fourth part,based on the principle of fuzzy comprehensive evaluation, the assessment indicator system of the innovation ability is constructed.The example of A and B companies confirm that the continuing innovation comes from the internal environment; the fifth part then analyzes the situation and the problems of the internal environment of SMEs in Jiangsu Province; the suggustions of improvement of the internal environment of SMEs in Jiangsu are proposed in the sixth part.