Investigating the Influencing Factors of Technological Innovation and Sustainability of SMEs in China

Small and Medium Enterprises (SMEs) serve as vital engines of economic growth, particularly in technology-intensive industries.This study explores the key factors influencing technological innovation and sustainability among SMEs in China.By examining industrial distribution, technological classification, growth stages, workforce composition, and business longevity, this research provides a comprehensive understanding of the challenges and opportunities shaping SME development.The findings reveal that a substantial proportion of SMEs operate within the electronics sector (51.4%), followed by advanced technology manufacturing (25.7%).Furthermore, the majority of SMEs fall within the city-level technological classification (61.5%) and are in the rapid-growth stage (30.3%).Workforce size is identified as a crucial determinant of sustainability, with 35.8% of SMEs employing fewer than 100 workers.These insights underscore the necessity for targeted policy interventions to promote technological adoption, workforce upskilling, and financial stability, thereby enhancing SME competitiveness and ensuring long-term sustainability.This study contributes to the ongoing discourse on SME development in China by offering empirical insights and strategic recommendations to strengthen innovation capacity and sustainable growth.