The Impact Of External Innovation Source On Technology Innovation Performance In SMEs

SMEs are an important force in China’s economic and social development and play an important role, especially in a region or a country’s modernization process. Throughout the developed areas of eastern China and abroad, SMEs have an irreplaceable role to expand employment and promote economic growth.With the ongoing reform of China, SMEs in the west of our cuontry develop quickly.Open innovation was proposed by Chesbrough, he believes the old model of innovation can not adapt to the environment, so companies should implement open innovation. Open innovation model means that valuable ideas could from the company’s external and internal at the same time.And the commercialization path could not only from the inside of the company, but also from the outside of the company.The environmen of open innovation has gradually formed. It not only a greater challenge for SMEs, but also a huge opportunity. There are some challenges for western SMEs. Firstly, it is difficult for SMEs to raise moneny. Sconendly, western SMEs have low R&D and knowledge absorptive capacity. Open innovation emphasizes the use of external resources, but only access to external resources is not enough, companies must fully absorb external resources to increase performance. Thirdly, The westen area that have fewer research institutions, the small firm size, low salary that make western area have difficulty to attract high-tech talent.There are also many opportunities for westen SMEs.Firstly, Western SMEs have strong intention to seek profit, and they are willing to cooperate with other company,.Businessmen also willing to make up their own lack of knowledge from the outside to find the appropriate resources to cooperate with, Secondly, the western SME management system is more flexible than large enterprises. Finally, the Government’s policy support for Western SMEs encourge them to implement open innovation. This artcle studied the relationship between external innovation sources and innovative performance,which use open innovation as background and analyze with westen SMEs data.In this study,it is including theoretical, empirical analysis, conclusions and recommendations. In theoretical research,the idea of the theme of this article come from the deep study on several major fields that including open innovation, external innovation sources, SMEs technological innovation, knowledge absorption ability. In the empirical research, the author collected western SMEs in the IT industry, But due to limited resources, the data mainly come from Ningxia province, there are also a small part of the data from the other western region.The conclusion and recommendations based on empirical analysis.The innovation of this study mainly contends the following aspects.Firstly,the study of open innovation mostly based on large enterprises.The author believes that open innovation is the main emphasis on cooperating with external resources, small and medium-sized enterprises, especially the western SMEs SMEs have greater impetus to integrate external resources.From the point of view of research methods, the study of open innovation for SMEs stays in the level of theoretical research, but few studies have done empirical research for SMEs. From the content of the study, most articles explain the characteristics of SMEs and the needs for open innovation.They analyze its strengths, weaknesses, opportunities and threats.At last, they make recommendations.The range of the research of open innovation is slightly hollow. In this study, only choose one aspect of open innovation that is co-operation with external innovation sources, and study of the relationship between its innovation performance while use the knowledge absorptive capacity as a control variable.It is more clear than other study.