Jiangsu SME Innovation Capacity Of Government Policy Support

Although just a small part of Chinese Small and Medium enterprises (SMEs) have the innovative capability, they are becoming more and more important in China's economy system. Recently, how to build the system to support SMEs innovation capacity is one of the key factors to the growth of SMEs and development of economy in China.Based on the research and summarize of relevant literature, firstly, this article describes the composition of corporate innovation; then according to the summary of policies which serve for SMEs in Jiangsu and the different characteristics of SMEs, this article also propose the assumed and relational model which aims to verify the relevant government policies have great effect on SMEs in Jiangsu Province. And then through the survey for sample enterprises and the combination analysis of empirical results and reality, this article gives the suggestion on helping the government improve the support system for SME innovation capacity.This paper argues that the four components of Jiangsu's SMEs policies, such as incentives, financial instruments, public services and personnel training have the influence on the five components of innovation capabilities, just like innovative resource input capacity, research and development capacity, innovation capacity, marketing capability and management innovation capability. And the business background has the regulation ability in government policies which aim to culture SMEs'innovative ability. Moreover, this article believes different components of innovation need different support policies. In general, personnel training and financial instruments are the key factors to improve the enterprises'innovation abilities. It also argues that different types of enterprises have different requirements on innovation capability, and the demand for government policies is different, so this article believes that based on different situations, the government should utilize suitable policies to support appropriate enterprise.This article insists that, in order to regulate SMEs innovational behaviors, the government should formulate a reasonable legal system and change the functional orientation of SMEs. And from the view of supporting SMEs innovational vitality, the government also should pay more attention on building tax policies and financing tools; at the same time, the combination of science and Technology Park, Industry Cluster, service platform and measures on training sustainable talented person all are important parts of Jiangsu's policies to support SMEs.