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2014•Advances in intelligent systems research/Advances in Intelligent Systems ResearchOpen access

Study on the Function of Government in the Innovation and Development Process for SMEs in China

Shuo Liu

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Abstract

The government plays an important role in the innovation and development process of SMEs in china.Intuitively, government agencies have an important impact on innovation of small and medium-sized enterprises (SMEs), which through direct subsidies, tax incentives, financial support, business incubator, government procurement and the diffusion of innovation policy, and by a duty power and individual power.Further analysis showed that, the impact of government on SMEs innovation performance need to be mediated by three factors: SMEs Innovation resources input, the strength of relationship between SMEs and government, SMEs organization incentive.

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The government plays an important role in the innovation and development process of SMEs in china.Intuitively, government agencies have an important impact on innovation of small and medium-sized enterprises (SMEs), which through direct subsidies, tax incentives, financial support, business incubator, government procurement and the diffusion of innovation policy, and by a duty power and individual power.Further analysis showed that, the impact of government on SMEs innovation performance need to be mediated by three factors: SMEs Innovation resources input, the strength of relationship between SMEs and government, SMEs organization incentive.

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Available abstract

The government plays an important role in the innovation and development process of SMEs in china.Intuitively, government agencies have an important impact on innovation of small and medium-sized enterprises (SMEs), which through direct subsidies, tax incentives, financial support, business incubator, government procurement and the diffusion of innovation policy, and by a duty power and individual power.Further analysis showed that, the impact of government on SMEs innovation performance need to be mediated by three factors: SMEs Innovation resources input, the strength of relationship between SMEs and government, SMEs organization incentive.

Key concepts: Business, Government (linguistics), Industrial organization, Subsidy, Incentive, China, Government procurement, Function (biology)

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