Study On The Innovation Model And Mechanism Of The Middle And Small-sized Enterprise Development In China

Recently, the driving force of innovation has become a significant direction within the background of ?New Normal� in China economic development. In terms of the middle and small-sized enterprise(SME), however, the deficiency of self-dependent innovation displays the main reason for inferior industrial level in China. Therefore, it�s always hard to figure out the development and innovation model in SMEs, which directly restricts the growth and development combining with an ineffective practical methodology.On the perspective of growing process in terms of SMEs, this dissertation investigated the different innovative strategy limitation in different stages of enterprises development. To begin with, focusing on the innovation strategies of enterprises growth process, this research utilized Game Model to analyze risk return and decision-making influence factors. Moreover, the research used entropy evaluation method to evaluate the ability of enterprise innovation, and horizontally simulated the innovation strategy transformation of enterprise development. Finally, this research took empirical analysis by a case study of MIUI development and growth innovation strategy, which tested the inevitability of ?imitative innovation, scale expansion, capital investment and iteration strategy of self-dependent innovation enhancement �in terms of development and growth of SMEsFirstly, in two enterprises� Game Model, the innovation returns, innovation cost, failure risk, imitation cost(the exploitation of the patent) are the key variables of enterprise innovation strategy choice. The self-dependent innovation threshold of higher earnings and lower risks enterprises is inferior to those initial enterprises, and therefore those initial enterprises inevitably choose imitation innovation. Nevertheless, combining with the expansion of business scale, the enhancement of risk tolerance, external environment exchange and increasing demands on enterprises development potential of stakeholders, the SMEs have to implement innovation strategy transition, and set up a system of ?start-up stage� imitation innovation strategy and ?the middle and later periods� enterprise growth mechanism.Secondly, with utilizing the entropy evaluation method, based on the data of the World Bank 2012 China enterprise investment climate survey,, this research indicated that capital capacity is the main bottleneck of SMEs� innovation development restriction. It indirectly proved the theoretical derivation that SMEs choose imitation innovation but not self-development innovation. Along with the development of enterprises, SMEs increase the input on scientific and technological innovation. But the innovation strategies of enterprises are also impacted by industrial structure. In technology and labor intensive industry, as well as those industries which can be hugely impacted by innovation in the fields of market shares and competitiveness, it might enhance the innovation input intensity when the enterprise goes into medium scale or even smaller scale. Meanwhile, whether an enterprise can be cultivated by innovation strategy transformation, the industrial character and market structure also matters for certain.Thirdly, being with the impact of internet, some mobile phone manufacturers indicate that business model innovation might be independent besides technology innovation. The past market access barrier, built by intellectual property system, has been gradually being broken. The competitive advantages achieved by entire intellectual property monopoly is hard to restrain the risen of industrial upstarts, which also conform to the formula of ?innovation income V<innovation cost C<imitation cost�. Hence, it�s theoretically reasonable that MIUI starts with imitation innovation strategy. MIUI conducts with the main strategy of ?product imitation+ management innovation� to extend market shares rapidly. In addition, along with the enterprise development and growth, the imitation cost increases gradually and therefore restricting further development. Therefore, MIUI transforms into a new innovation strategy, which adjusts to its stronger enterprise�s innovation cost payment ability.