Research On The Evolution Of Synergetic Innovation Behavior Of SMEs On Perspective Of Co-opetition Theory

As a main power of the innovation system of China, SMEs play a vital role in China’s transforming process of becoming a creative country. Consequently, the innovation behavior of SMEs not only inspired and highly focused by Chinese government but also paid much attention by the academic world. However, because of the barriers form themselves, most of the innovation behavior of SMEs are failed, as a result of high investments and risks. Synergetic innovation, as a new science and technology innovation form, could help SMEs rearrange key innovation elements, get rid of the inherent constraints and improve innovation capability, effectively. While, in reality, the scale and efficiency of SMEs’ synergetic innovation are frustrated in China. Therefore, it is worth to study the synergetic innovation behavior of China’s mid to small business, especially in the economic transforming period of current China.This study based on those studies about the synergetic innovation of SMEs form previous scholars, analysis the connotation of SMEs’ synergetic innovation from the co-opetition aspect, and makes it clear that there are two behaviors, synergy of competition and cooperation; exist during the innovation process of mid to small business. This two behaviors collaborative evolution, leading and relying on each other, transforming, affiliation, become binary relation ultimately. In additions, this report discusses the importance and key factors during the innovation process of mid to small business, and explains it based on game theory.To deeply research how to keep stability as well as synergy of competition and cooperation in the mid to small business innovation process and how these factors impact the synergy of co-petition, this report builds repeated game model, synergy game model, and synergy game model under the supervise from government, and discusses how the synergy, impact factors and mechanism works during the process SMEs synergetic innovation, under two persons’repeated game framework, group synergy framework, and government intervention framework.What is more, the study result about the synergy process of SMEs synergetic innovation under the perspective of co-petition theory in this study. And the conclusions are as follows. Among the micro level factors, more long-term expectation of cooperation motivation, and more preference of firms to cooperate, more possible of evolution of synergetic innovation activities of SMEs. As to the learning capacity, research shows that more strong learning capacity will allow competitive strategy. The perhaps reason is that strong learning capacity will make firms obtain benefits through opportunistic behavior. Thus, control opportunistic behavior is a most effective approach to appeal high-tech SMEs into synergetic innovation. Among the meso level factors, synergetic effect and trust between firms will both promote to evolution stable of synergetic innovation activities of SMEs. And there is an optimal benefit allocation coefficient that makes firms cooperation with the most possibility, while the coefficient is in positive correlation with learning capacity. Among the macroscopic level factors, the governments guidance force, the cost and benefit of monitor are all positive factors of SMEs synergetic innovation activities. All the conclusions could be helpful to increasing the efficiency of the synergetic innovation activities of SMEs. Furthermore, the result of this report could also provide strong evidence for government’s policy-making, to supervise and stimulate the synergetic innovation of SMEs.