The Empirical Study of SMEs Innovation and Performance Factors in Sichuan

This article aims to assess the factors affecting the relationship between innovation and performance of SMEs, which has been subject to by SMEs Innovation Fund in 1999 and successfully passed the acceptance of funds to support SMEs innovation in Sichuan Province; Data from 174 SMEs in Sichuan Province and investigation of different properties ,factors influencing innovation and innovation performance; different ways of improving the performance of SMEs, all help the government to develop more targeted support of business development innovation policy. According to the research, SMEs innovation activities are mainly limited to family scales, focusing on improving quality, increasing output and technical standards. The study found that technology-based SMEs in Sichuan Province mainly purchase techniques from external sources. Their own innovation is not good. Innovation strategies are adapted to competition have better performance in business, as they have the capability to independently research and adapt to the new marketing economy.