Innovation in Chinese and German small and medium-sized companies

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
• 1.1 Research background
• 1.2 Problems
• 1.3 Structure
• 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

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to analyze the innovation landscape of Chinese small and medium-sized enterprises (SMEs) and compare it with that of German SMEs. The study uses a systematic literature review of the past 20 years to understand the characteristics, challenges, and opportunities surrounding innovation in Chinese SMEs. A comparison with Germany helps to identify potential areas for future research and development in China.

• Characteristics of SME innovation in China
• Challenges faced by Chinese SMEs in pursuing innovation
• Opportunities for innovation presented to Chinese SMEs
• Comparison of Chinese and German SME innovation research
• Future research directions for SME innovation in China

Zusammenfassung der Kapitel (Chapter Summaries)

1. Introduction: This chapter sets the stage for the thesis, outlining the research background, driven by China's economic miracle and the "Made in China 2025" plan emphasizing innovation. It highlights the need to understand Chinese SME development, particularly their innovation strategies, and contrasts this with the success of German SMEs. The chapter identifies key research questions focusing on comparing innovation patterns between Chinese and German SMEs and exploring the potential for learning between the two.

2. Innovation orientation of companies: This chapter defines innovation, drawing upon various scholarly and organizational definitions, emphasizing the diversity of interpretations across countries and cultures. It establishes a consistent, company-centric understanding of innovation. It further explores the importance of innovation for company performance, referencing numerous empirical studies that demonstrate positive correlations between innovation and key performance indicators like turnover growth and employment.

3. Methodology: This chapter details the research methodology employed, which is a systematic literature analysis. The author explains the process of searching and selecting literature from German, English, and Chinese sources, including databases like EBSCO and CNKI, and outlines the selection criteria for Chinese literature.

4. SMEs in China: This chapter provides a comprehensive overview of SMEs in China, starting with their definition and evolution through three historical phases (1978-1992, 1992-2002, 2003-2018). It analyzes the significance of SMEs for the Chinese economy in terms of employment, social stability, and market competition. The chapter also presents a current status overview of Chinese SMEs based on a report by Alibaba, covering their business areas, geographical distribution, size, and the main challenges they face, such as high tax burdens, rising employment costs, and fierce competition.

5. Innovation in SMEs: This chapter forms the core of the thesis, presenting a detailed analysis of SME innovation in China and Germany. For China, the chapter synthesizes the findings from various studies on the characteristics, challenges, and opportunities related to SME innovation. The Chinese SME innovation landscape is described as active but with low innovation levels, relying on imitation and lacking focus on core competencies. The chapter explores challenges such as funding shortages, inadequate intellectual property protection, and a lack of skilled talent. It also highlights opportunities presented by the rapid development of the internet, particularly internet finance and e-commerce, as well as the expansion of the New Third Board, providing new financing avenues.

6. Future Research: This chapter outlines areas for future research, emphasizing the need for nationwide empirical studies across various regions of China to better understand regional differences in SME innovation. The chapter suggests that the interaction of "Internet +" with SME innovation, and the integration of low-carbon and green technologies, could constitute important future research topics. Further exploration of technological innovation knowledge flows within global value chains and institutional mechanism reforms are also highlighted.

Frequently Asked Questions: Analysis of Innovation in Chinese and German SMEs

What is the main topic of this thesis?

This thesis analyzes the innovation landscape of Chinese small and medium-sized enterprises (SMEs) and compares it with that of German SMEs. It examines the characteristics, challenges, and opportunities surrounding innovation in Chinese SMEs through a systematic literature review of the past 20 years. A comparison with Germany helps to identify potential areas for future research and development in China.

What are the key objectives of this research?

The main objectives are to characterize SME innovation in China, identify the challenges faced by Chinese SMEs in pursuing innovation, explore opportunities for innovation, compare Chinese and German SME innovation research, and suggest future research directions for SME innovation in China.

What methodology was used in this research?

The research employed a systematic literature analysis, reviewing literature from German, English, and Chinese sources (databases like EBSCO and CNKI) to analyze the innovation patterns of Chinese and German SMEs. Specific selection criteria were applied to ensure the quality and relevance of the included literature.

What is the definition of innovation used in this thesis?

The thesis draws upon various scholarly and organizational definitions of innovation, acknowledging the diversity of interpretations across countries and cultures. A consistent, company-centric understanding of innovation is established, emphasizing its importance for company performance and its positive correlation with key performance indicators.

What is covered in the chapter on SMEs in China?

This chapter provides a comprehensive overview of SMEs in China, including their definition, historical evolution across three phases (1978-1992, 1992-2002, 2003-2018), economic significance, current status (based on an Alibaba report), and the main challenges they face (high taxes, employment costs, competition).

What are the key findings regarding innovation in Chinese SMEs?

The analysis reveals that the Chinese SME innovation landscape is active but characterized by low innovation levels, imitation, and a lack of focus on core competencies. Challenges include funding shortages, intellectual property protection issues, and a lack of skilled talent. However, opportunities exist through internet development (e-commerce, internet finance), and the expansion of the New Third Board for financing.

How does the thesis compare Chinese and German SME innovation?

The thesis compares the characteristics, challenges, and opportunities of SME innovation in China and Germany, highlighting key differences and similarities. This comparative analysis helps identify potential areas for learning and development in the Chinese context.

What are the suggestions for future research?

Future research should include nationwide empirical studies across different regions of China to understand regional variations in SME innovation. Further exploration of the interaction between "Internet +" and SME innovation, the integration of low-carbon and green technologies, technological innovation knowledge flows within global value chains, and institutional mechanism reforms are also recommended.

What is the overall conclusion of the thesis?

The thesis concludes by summarizing the findings on the innovation landscape of Chinese SMEs, highlighting both the challenges and opportunities, and emphasizing the need for further research to support the development of innovation within Chinese SMEs, drawing valuable lessons from the German experience.