With the rapid economic development in the past two decades, China has become the world second largest economy and has a profound influence on global economic development. In order to have a better understanding of the Chinese “economic miracle” and a future-oriented insight into Chinese economic growth, it is necessary for us to have a glance at the development of Chinese small and medium-sized companies (SMEs) and the driving force of their development: Innovation.
Many scholars in China and Germany have carried out research on SME innovation. However, because of the differences in culture, economic environment, and SME development history etc., the development of SME innovation is also different, leading to dissimilar research directions.
In this thesis, the author analyzes the articles, reports, surveys, books and other literature that was made in China in the past 20 years. All the literature and data are synthesized into three parts: the characteristics of China's SME innovation, the challenge of China's SME innovation and the opportunities of China's SME innovation. Based on literature analysis, the author summarizes the characteristics, challenges and opportunities into different points. This thesis also presents the most representative German research on SME innovation as a comparison to Chinese ones, and describes the similarities and differences between Chinese and German SMEs' innovation research, helping to find out the new direction of future research on SME innovation in China.
Table of Contents
1. Introduction
1.1 Research background
1.2 Problems
2. Innovation orientation of companies
2.1 Definition of Innovation
2.2 The Importance of innovation in companies
3. Methodology
4. SMEs in China
4.1 Definition of small and medium-sized enterprises in China
4.2 Importance of small and medium-sized enterprises for China
4.3 History
4.4 Current status of China’s SMEs
4.5 Problems China’s SMEs are facing
5. Innovation in SMEs
5.1 In China
5.1.1 Characteristics of Innovation in China’s SMEs
5.1.2 Challenges of Innovation that China’s SMEs are facing
5.1.3 Opportunities of Innovation that China’s SMEs are facing
5.2 In Germany
6. Future Research
7. Summary
Research Objectives & Key Topics
This thesis examines the development of innovation within Small and Medium-sized Enterprises (SMEs) in China, contrasting their experiences and characteristics with German counterparts to provide insight for future economic policy and corporate strategy.
- The current state and characteristics of SME innovation in China.
- Primary challenges faced by Chinese SMEs regarding financing, talent, and policy support.
- New opportunities for innovation, particularly through the lens of "Internet+" and e-commerce.
- A comparative analysis of Chinese and German innovation models in SMEs.
- Future research directions to bridge existing knowledge gaps in SME development.
Excerpt from the Book
Simplified organizational structure and short product innovation cycle
According to the study of Ren and Chen (2002), the number of employees in SMEs is small, the level of management is small, the organizational structure is relatively simple, the level of specialization within the enterprise is low, and the tools among personnel are flexible. It is conducive to reducing losses in the process of information flow within the enterprise, and is conducive to improving the efficiency of business decision-making, so as to more effectively carrying out innovation management and incentives. Due to its own characteristics, small and medium-sized enterprises generally do not establish standardized operating procedures and systems as large enterprises, so that employees can work more flexibly (Gao, 2011). This will help to give full play to the enthusiasm of the employees of the company, especially the technical staff, and help to motivate the potential of the employees, thus providing a broad space for employees to innovate.
In addition, the decision-making of SMEs is relatively flexible and fast (Ren and Chen, 2002). It is not necessary to require big amount of research as a big company does to make a decision. Therefore, SMEs' innovations are quick and time-saving, which helps to shorten the cycle of innovation. Moreover, due to the small number of small and medium-sized enterprises, it is easier for employees to communicate with each other and between the upper and lower sides to reach a consensus. This kind of high cohesive and harmonious relationship within the enterprise is conducive to stimulating the overall innovation spirit of the enterprise.
Summary of Chapters
1. Introduction: Presents the research background regarding the Chinese economic miracle and the necessity of studying SME innovation compared to German examples.
2. Innovation orientation of companies: Defines the concept of innovation and validates its critical role in firm performance and growth across different countries.
3. Methodology: Outlines the systematic literature analysis approach using databases like CNKI and EBSCO to evaluate research from the last 20 years.
4. SMEs in China: Describes the historical phases, definition, and current socio-economic status of Chinese SMEs along with the difficulties they encounter.
5. Innovation in SMEs: The main body, analyzing characteristics, challenges, and opportunities of innovation in Chinese SMEs, with a comparative look at Germany.
6. Future Research: Suggests that future studies should focus on nationwide empirical data, the impact of Internet+ on innovation, and global value chain integration.
7. Summary: Concludes the thesis by summarizing findings on innovation levels, the importance of cluster strategy, and the potential impact of Internet+ technologies.
Keywords
SME, Innovation, China, Germany, Internet+, SME Clusters, Intellectual Property, Financing, Entrepreneurship, Economic Growth, Industrial Policy, Business Model, Technology Transfer, Venture Capital, Market Competition
Frequently Asked Questions
What is the primary focus of this research?
The work primarily investigates the nature, challenges, and opportunities of innovation within Chinese Small and Medium-sized Enterprises (SMEs), utilizing the German SME model as a point of reference.
What are the central thematic areas covered?
The main themes include the definition and importance of innovation, the historical development of Chinese SMEs, their current structural and innovation-related challenges, and the potential impact of modern digital trends like Internet+.
What is the primary goal of this thesis?
The primary goal is to synthesize literature to summarize the characteristics, challenges, and opportunities for SME innovation in China and to determine how Chinese SMEs can potentially learn from German counterparts.
Which research methodology is applied?
The author employs a systematic literature analysis, reviewing empirical studies, academic journals, reports, and surveys published in Chinese, English, and German over the last two decades.
What is addressed in the main part of the work?
The main part analyzes the characteristics of innovation, identifies major hurdles (such as funding shortages, talent scarcity, and IPR issues), and evaluates new opportunities arising from the digital economy.
Which keywords characterize this work?
Key terms include SME innovation, cluster strategy, Internet+, SME financing, intellectual property protection, and entrepreneurship.
How does the "Internet+" era specifically impact SME innovation?
Internet+ provides SMEs with efficient information-sharing platforms, new avenues for e-commerce, and alternative financing models like internet finance, which help mitigate traditional funding and market access difficulties.
Why are German SMEs used as a benchmark?
German SMEs are considered global leaders in innovation despite having limited resources; their long-term mindset, niche focus, and community embeddedness provide a useful framework for comparison against the Chinese experience.
- Quote paper
- Trim Salihu (Author), 2018, Innovation in Chinese and German small and medium-sized companies, Munich, GRIN Verlag, https://www.grin.com/document/454141
