Study On The Evaluation And Improvement Of Innovation Capacity Of Technology-based Small-Scale Enterprises In Shandong Province

In the modern society, innovation and technology have been recognized as important resources. For an enterprise, the crucial element to gain the advantages in the fierce market competition is to improve the innovation ability. The only method of avoiding failures in competition is to keep innovation. Technology-based small and micro enterprises, which are featured with high-level of technology and high-level of innovation, are the representatives of innovation-orientation enterprises. These enterprises are also the basics and seeds for growing as large corporations with sophisticated technology. This study analyzed the current conditions and problems existing in technology-based small and micro enterprises in Shandong province.Based on reviewing of Chinese and western literature and theories related with enterprise innovation, this study selected 15 factors based on four dimensions(i.e. resources for innovation, management ability for managers, output of innovation and environment for innovation) to construct an evaluation system assessing the technology-based small and micro enterprises’ abilities of innovation. Through Analysis Hierarchy Process(AHP), this study put weight to each factors. Finally, to test the validity and reliability of this evaluation system, this study selected an enterprise for empirical examination. The conclusion are presented as follows:Firstly, innovation input of technology-based small and micro enterprises has significant impact on their innovation capacities. Accordingly, increasing investment in R&D expenditures and R&D personnel proportion is one of the effective ways to enhance the innovation ability of technology-based small and micro enterprises in Shandong province.Secondly, innovation output of technology-based small and micro enterprises is also very important to enhance their innovation capacities. Therefore, technology-based small and micro enterprises in Shandong province should focus on innovation output, turn innovation capability into productivity promptly, increase the market share of innovative products, payattention to the protection of patents, proprietary technology and other intellectual property rights. Thirdly, the entrepreneurial decision-making ability to innovate and the collaboration with external organizations also have important impact on the promotion of innovation capacities of technology-based small and micro enterprises in Shandong province. Therefore,leaders of technology-based small and micro enterprises should improve their decision-making ability to innovate, also enhance the enterprise’s innovation capacities through collaboration with external organizations.