In fact, NGEs in China has come to the crossroads of life-and-death in "Platter Economy", for low-end development, extensive management as well as lack of core competitiveness. Under series of challenges, NGEs has no choice but to transform and upgrade to higher platform, or quit from the competition and completely be eliminated by the market. The greater economic society changes, the fiercer of competition in the market. Firms need to follow Darwin's law of "survival of the fittest" and constantly make change. Every enterprise need change itself to survive. This is so called transformation and upgrading process in economics.
After questionnaire survey and on-site visit of NGEs in 19 provinces across the country, this report used standardized econometric analysis in modern economics, analyzed data of 754 questionnaires, in which 622 were valid. Accordingly, We made our conclusion as follows: If NGEs want to out of woods and further develop in the new situation, the solution is to get rid of traditional path dependent and accomplish transformation and upgrading through make innovations; the primary objective of transformation and upgrading is to gain a large shares of market; innovation is the eternal power to achieve transformation and upgrading; entrepreneurship and expertise is key to the success of transformation and upgrading; improving corporate governance and management level is the institutional foundation of transformation and upgrading; government guidance and public service is important guarantee of the transformation and upgrading. In order to speed up transformation and upgrading of NGEs, we give series of policy suggestions in this book.
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