The Green Innovation for SMEs in the Low Carbon Economy

This article reviews the established evidence and thinking around the challenges and opportunities that will affect China small and medium-sized enterprises (SMEs) in the transition to a low carbon economy. The review draws in particular on the innovation literature and that which relates to the development of learning capabilities in SMEs. Although smaller firms are resource constrained, limiting their ability to make significant innovations, they possess certain behavioral advantages and the green Innovation, notably that they can respond more rapidly, flexibly and efficiently to customer needs than can larger organizations.