Small and medium-sized enterprises should focus on both "hardware" and "software" when carrying out innovation.
On August 22, Li Lecheng, Secretary of the Leading Party Members' Group and Minister of the Ministry of Industry and Information Technology, presided over the 11th Roundtable Conference for Small and Medium-sized Enterprises. Li Lecheng emphasized that it is necessary to strengthen innovation leadership, adhere to the development path of specialization, refinement, specialization, and innovation, and aim to create more "unique skills." Attention should be paid to both "hard innovation" such as technological innovation and process innovation, and "soft innovation" such as organizational innovation and marketing innovation. Seize the opportunity of digital transformation and lead enterprises to leap towards high-end, intelligent, and green development.
This important discussion points out the direction for a large number of small and medium-sized enterprises to find their own positioning in the fierce market competition and achieve high-quality development.
Small and medium-sized enterprises are an important part of the national economy, like the capillaries of the economic organism. Although the scale of individual enterprises is limited, the overall vitality is abundant. They are an important force in promoting innovation, promoting employment, and improving people's livelihood. Facing the increasingly fierce market competition, the development of small and medium-sized enterprises is not only faced with many difficulties and challenges but also contains huge potential and opportunities. Based on this, the author believes that a large number of small and medium-sized enterprises should play the two cards of "hard innovation" and "soft innovation" to achieve the "acceleration" of their own high-quality development in innovation.
"Hard innovation" is the key for small and medium-sized enterprises to enhance their core competitiveness and an inevitable requirement for taking the path of technological breakthrough and product upgrading. It is reflected in many aspects, such as R & D investment in new materials and new technologies, intelligent transformation of production equipment, and technological iteration of core products.
There are numerous such small and medium-sized enterprises. Through "hard innovation" such as accelerating the development of new technologies and new products, they have enhanced the competitiveness of their products, won market share and profit margins, and laid a solid foundation for their long-term development.
However, we should also recognize that small and medium-sized enterprises are faced with many constraints in terms of funds, technology, and talents in the process of promoting "hard innovation." Therefore, from the perspective of the capital market, it is necessary to deeply study the characteristics and needs of scientific and technological innovation of small and medium-sized enterprises, and provide financial support for high-quality enterprises through issuance and listing, mergers and acquisitions, etc., to help them achieve high-quality development.
"Soft innovation" is the innovation of small and medium-sized enterprises in management, business models, and corporate culture. It is a key force driving enterprise development, including optimizing internal management processes and improving team collaboration efficiency; exploring new business models and tapping into new blue oceans of market demand.
For example, the rise of social media has provided enterprises with a brand - new marketing channel. Then, a large number of small and medium-sized enterprises should more effectively promote products and services and improve brand awareness through precise positioning and personalized marketing activities.
"Hard innovation" and "soft innovation" are the two core dimensions of innovation. They are like the two wings of a bird. Only by working together can they help small and medium-sized enterprises stand out in the fierce market competition and achieve sustainable development.
The author believes that in order to achieve the coordinated development of the two, small and medium-sized enterprises should, first, focus on core technologies and key products, increase R & D investment, establish a cooperation mechanism between industry, academia, and research, and accelerate the transformation of technological achievements; second, optimize the innovation management process, establish and improve a cross - departmental communication and coordination mechanism, promote the rapid circulation and sharing of information, and improve the linkage efficiency and operation efficiency of "R & D, production, supply, and sales"; third, establish and improve a long - term incentive mechanism to fully mobilize the innovation enthusiasm of employees, so that employees can realize their own value improvement while creating value for the enterprise, so as to attract and retain outstanding talents; fourth, closely monitor market dynamics and industry development trends, adjust innovation strategies in a timely manner according to their own actual situations, and strengthen cooperation with upstream and downstream enterprises in the industrial chain. Through resource sharing and technological collaboration, achieve complementary advantages and jointly promote the overall innovation and development of the industrial chain.
By the end of 2024, the number of small and medium-sized enterprises in China had exceeded 60 million, showing a development trend of "both quantity and quality improvement," and building a solid foundation for the development of the national economy. In the future, a large number of small and medium-sized enterprises should continue to promote innovation to bring new impetus to high-quality economic development.
This article is from Securities Daily. Author: Zhu Baochen. Republished by 36Kr with permission.