Research on Management Accounting for SMEs Innovation in China

This paper introduces the findings from an extensive postal survey conducted in Wuhan Optics Valley, which looks at the innovation process of small and medium enterprises (SMEs), both incorporated and unincorporated. The implications of management accounting practices on innovation decisions in these businesses, are considered. The results indicate that management accounting is very sophisticated and has an effect on innovation management in most SEMs. Especially for accounting planning practices are in a position to utilise fully all available innovation risk reduction mechanisms.