This paper focuses on the measurement of creative abilities in Small and Medium Sized Enterprises (SMEs) of Korea and China. The creative abilities are measured based on the data of investment both in funds and personal staff. In addition, this analysis also reveals on the differences in innovation regulation systems of two countries In this paper data from the China Statistic Yearbook and the Website of Korean Small and Medium Business Administration, are used to examine the abilities of innovation. After compared the relationship of innovation performance and the technological creation, it provides some suggestions to improve innovative capabilities for China enterprises, such as to release financial control on private sectors and to increase training programs for enterprisers.
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