Abstract: Promoting innovation among “SRDI” (abbreviation for “specialized”, “refined”, “unique” and “innovative”) small and mediumsized enterprises (SMEs) is an important measure to strengthen supply chains and build an innovative nation. The innovation environment is a key external condition for nurturing innovation. Based on the case of “SRDI” SMEs in 31 provinces of China, the fuzzy set qualitative comparative analysis (fsQCA) and NCA are combined to explore the synergistic effects of innovation infrastructure, market environment, labor quality, financial environment, and entrepreneurial level on enhancing the innovation performance of “SRDI” SMEs. It is found that a good market environment is a necessary condition for achieving the innovation performance of “SRDI” SMEs; there are three pathways to promote the innovation performance of “SRDI” SMEs, namely, the dualwheel drive of market and finance, the dualwheel drive of infrastructure and market, and the threesided synergy of market, talent, and entrepreneurship; under certain conditions, there exists a substitution relationship between innovation infrastructure and financial environment.

Key words: innovation environment; SRDI; innovation performance; group analysis