Building Up the System of Incentive Mechanism of Technical Innovation SMEs - An Analysis based on the Cluster Innovation

SMEs are the main force of technical innovation in China, but the innovative motivation of SMEs is insufficient due to various reasons. It not only seriously affects the survival and development of SMEs themselves, but also directly hampers the realization of the national strategic goal for innovation. According to the characteristics of technical innovation of SMEs, and combining with the theories of institutional economy and relative business managerial theories as well, the present article makes an in-depth analysis of the causes of inadequate power of technical innovation in SMEs, and points out that the fundamental reason for insufficient power of technical innovation is the absence or imperfection of a corresponding "system" that provides incentives. Finally, based on the cluster innovation, the article constructs an institutional system aimed at motivating small and medium enterprises. It has certain theoretical value and practical significance.