Direction on the Technology and Management Innovation of the S & M Firms

Now large corporations, government･and citizen are required to pay attention to S&M Firms so that S&M Firms would develop to global corporations not inferior in technology and management innovation rather than protection oriented support. The large corporations as the partner shall implement Win-Win･transparent management against S&M Firms. Also, the government shall provide drastic support so as to provide wings to the horse meaning S&M Firms with technological power. Currently, we are experiencing very difficult economic reality. In this case, painful efforts are desperately need to enhance productivity through S&M Firms’ technology development and grand innovation on overall management. These days, the weight of S&M Firms occupied in a national economy is very high in every country. Hence, sometimes the differentiation between advanced countries and emerging countries is made based on the level of perception on S&M Firms, development level or competitiveness of S&M Firms. The reason whey S&M Firms shall be perceived as important are mainly as follows; Firstly, S&M Firms are the engine of economic development. In any country, high weight of S&M Firms is very important in the aspect of production, employment and income distribution. These roles ultimately create the middle class in a country, taking the role of most important stepping stone for national development. Secondly, S&M Firms enhance the industrial relationship. Smooth ties and role sharing with large corporations by S&M Firms enhances the spreading effect from front and rear within an industry, and induces synergy effect. Hence, competitiveness of large corporations is dependent upon the level of S&M Firms. Thirdly, various consumption desires are satisfied. S&M Firms perform the role to respond promptly to the desire of consumers under diversification of modern society, individualization and specialization by small quantity batch production and flexible organization. Fourthly, S&M Firms enable fostering of materials and component industry, improving the national balance of payment internationally. In a single country, the development of materials, components industry not only enhances the industrial competitiveness, but also enhances the competitiveness of completed product produced by domestic large corporations, and promotes export of components, thereby improving the balance of payment. Furthermore, S&M Firms may promote balanced technology development within the whole industry, can absorb excess labors. Also the role sharing function within the industry is another important area for contribution.