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Small and medium-sized science and technology enterprises play an important role in Liaoning’s economy. Based on the investigation report of science and technology innovation small and medium-sized enterprises in Jinzhou, this article discussed basic situation, operation and existing problems of small and medium enterprises with technological innovation. In the end, the article proposed the countermeasures and suggestions for improving the innovative ability of technological innovation-oriented SMEs, such as strengthening the construction of collaborative innovation, improving the efficiency of scientific and technological innovation and implementing "innovation +" action plan to cultivate new economic growth points and to improve incentive mechanism and dynamic role of innovative talents, etc. Keywords—Innovation; Small and medium-sized enterprises; Incentive mechanism of innovative

Research on the Development of Science and Technology Innovation of Small and Medium Sized Enterprises in Liaoning