The Research On Technological Innovative System Of SME In The Manufacturing Industry

As China’s the population dividend is being further reduced and the legal system is becoming further more perfect, the advantage that China’s manufacturing SME owns is not apparent any more. So technological innovation is the only way for manufacturing SME to compete in the fierce market nowadays.The paper analyzes the features and the present situation of technological innovation in China’s manufacturing SME. And the paper studies technological innovative theory and model. Then the paper analyzes the innovative systems of SME in Japan, Germany and USA. So the study provides good reference for China’s manufacturing SME to build the suitable innovative system.In the technological innovative system of manufacturing SME, there are so many micro-entities, for example SME, government departments, financial institutions, scientific institutions. The function of the micro-entities is the key for the technological innovative system to operate.The paper discusses the need for China’s small and medium-sized manufacturing enterprises to carry out the technological innovation from the simple duopoly model to the duopoly model in the technical innovation. And the paper exams the only way, which ensures sales, prices and profits stable for the manufacturing enterprises that have technology gap with peers, and drives the appropriate extent in which the enterprises innovate.The paper puts forward the interaction of micro-entities in the system. Firstly, the paper analyzes how the initial capital affects the successful probability of the technological innovation. The conclusion is important for the cooperation of financial institutions with SME. Secondly, the paper discusses the possible cooperation in the field of technological innovation for the enterprises. The conclusion determines the best cooperation proportion for the enterprise in three circumstances. The conclusion is very important to direct the cooperation. Thirdly, the paper analyzes the enterprises that own comparative advantage in the technology innovation and the possibilities of cooperation, and it is helpful for the enterprises to undertake the project of technology innovation in the way it has comparative advantage, then swap the research funds. The manner of cooperation could get the condition of Nash equilibrium and yield the win-win effect. The conclusion is the cooperation of manufacture ring SME in the filed of financial.In order to arouse awareness and create the right conditions for the manufacturing SME to innovate. The paper analyzes how the government promotes the related entities, such as government departments, commercial banks, policy banks, investment institutions, enterprises themselves and other entities, to play a role in the system of technological innovation. And the concepts of alliance of manufacturing SME, the combined mechanism of production-studying-researching and the government institution are put forward, and the paper explants the function of the three concept entities. At the end, the Paper designs the system of technological innovation for China’s manufacturing SME.