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Does the Nation Innovation System in China Support the Sustainability of Small and Medium Enterprises (SMEs) Innovation?

Business School, East China University of Political Science and Law, Shanghai 201620, China
University Canada West, Vancouver, BC V6B1V9, Canada
Author to whom correspondence should be addressed.
Sustainability 2020, 12(6), 2562; (registering DOI)
Received: 12 February 2020 / Revised: 20 March 2020 / Accepted: 21 March 2020 / Published: 24 March 2020
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
To maintain sustainable economic growth, China has created a national innovation system (NIS) and strengthened the central status of firms. Our data show that the effect of turnover growth in small and medium-sized enterprises (SMEs) on China’s aggregate Gross Domestic Product (GDP)growth is significant, but the status of SMEs in the NIS and related policies is not significant. To determine whether there is a correspondence between the sustainability of innovation in SMEs and the support of China’s NIS, we developed a framework for China’s innovation policy under the NIS framework, taking into account its transition characteristics, to examine the texts of SME innovation policies and reveal the sustainability of SMEs’ innovation. The relevant national government policy texts were collected from the yearbooks of Chinese SMEs between 1999 and 2017 and government notices between 1994 and 2017. On this basis, we also compared with some other countries’ innovation systems. The findings indicate that China’s NIS pays little attention to the sustainability of SMEs’ innovation activities for two reasons. First, the scope of the NIS is very narrowly defined. Second, the top-down, government-oriented Research and Development (R&D) system that focuses on large state-owned firms leaves little room for innovation policies in SMEs. View Full-Text
Keywords: SME innovation; national innovation system; sustainability SME innovation; national innovation system; sustainability
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Jia, C.; Tang, X.; Kan, Z. Does the Nation Innovation System in China Support the Sustainability of Small and Medium Enterprises (SMEs) Innovation? Sustainability 2020, 12, 2562.

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