Abstract: The shift towards the "knowledge economy" has placed greater emphasis on innovation as a source of competitive advantage. But technology innovation activities are unpredictable and their processes are also full of all kinds of traps, so that firms often drive themselves into "the war of innovative attrition", and have to face innovation's dilemma. As an effective way of managing technology innovation, strategy of technology innovation has attracted more and more attentions of theorists and empiricists. Based on the initial results of an ongoing 1-year study, this article analyzes the structural model for the strategy of technology innovation in Chinese SMEs.

Key words: Small and Medium-Sized Enterprises (SMEs), strategy of technology innovation, structural model analysis