Research on the Innovation Ability and Competition Ability of SMEs in China

China is in an era that needs innovation; however, many studies about innovation are all around large enterprises and some high-tech enterprises, while studies on innovation management of small and medium sized enterprises are very few and with insufficient attention. Especially in such an environment of financial crisis, we can not neglect these small and medium sized enterprises which are important components of China's market economy, in this paper, we put forward an innovation management method and concept for small enterprises in combination with characteristics of these small and medium sized enterprises to make them enhance their competitiveness through innovation management and get rid of financial crises, hence become stronger and larger gradually.