Sme Technology Innovation In China's Government Factors

"Innovation is the soul of a nation and an inexhaustible motive force fornational prosperity", while technological innovation is the driving force ofeconomic growth. With the deepening of the knowledge economy and the rapiddevelopment of science and technology, technological innovation has becomethe deciding factor in market competition. Practice has proved that technologicalinnovation is the source of economic growth. SMEs not only create aconsiderable amount of technological innovation, but also create a high level oftechnology products. Improving technological innovation capabilities of SMEsplays a great role in economic development for a country. This has become thefocus of every country. However, there are still many factors which restrict theimprovement of SMEs, such as imperfect technological innovation supportingpolicy system, loose combination of industry, university and institution and thelower level services of scientific and technological intermediary agencies. It isextraordinary for the government to solve those problems in order to improvethe SEMs technological innovation ability. Therefore, this paper researches onthe government support for the SEMs technological innovation. The contents areas follows:Firstly, this paper defines the concept of SEMs and analyses the internaland external factors that influence the technological innovation of SEMs. TheGovernment support becoming one of the most important factors in influencethe technological innovation of SEMs.Secondly, due to SMEs play an important role in technological innovationactivities, as well as there are obvious defects of the market regulation for SEMstechnological innovation, so the government must support the SEMstechnological innovation.Thirdly, this paper analyses the current situation and problems of ourgovernment to support SMEs in technological innovation, including lack of theinstitutions and laws and so on.Fourthly, this paper presents four countermeasures for government to support technological innovation in SEMs, which are to establish a unifiedorganized institution system, to broaden the financing channels, to create a legalenvironment for SEMs and to strengthen technology innovation service system.