ABSTRACT
Under the control of Market economy, innovation by which the enterprises can gain competitive advantages and survive in the fierce market competition, is really important to the development of enterprises. In our country, most enterprises are SMEs, which have become important components of the national economy. With the development of the market economy today, innovation is the only way the SMEs can use to survive and develope. SMEs must establish an institutional system of innovation in order to develop, and system innovation can improve enterprise system by the innovation of property-right system, organizational system, management system and so on. The 21st century is an era that SMEs can win by their own development, they should use various means of innovation so as to highlight their competitiveness, so that achieve rapid development.
