As the global warming brings more and more disasters, controlling greenhouse gas emission is one of the main global crucial issues nowadays. As one of the main emitters in the world, China faces more and more international pressure to reduce the emission, so it is urgent to make the transition to a low carbon economy.At the same time, China has been going through the fast urbanization process as shown in the “Northam Curve”, and the current urbanization mode requires the demand of the carbon-intensive consumption, and could lead to the massive carbon emission as well. However, it is contradictory to the long-time sustainable development in China. So, under the current condition, the reduction plan needs to be fit in the Chinese demand, so it is very crucial, and requires innovation and creation to analyze the reduction factor and find the balance point between the urbanization and low carbon development mode. Regarding to the different urbanization rate and economic development modes characters between the East, Central, West part of China, this thesis uses inductive and deductive method to study. Firstly, it chooses one province from each region to investigate. Then it integrated urbanization factor into Kaya equation to study different factors impacts on the carbon dioxide emission in the three sample provinces. It also selected the co-integration econometrics method to study the equilibrium relationship between the carbon dioxide emission and other main factors. Through analyzing the current reduction plan, it explains and forecasts the possible emission in 2015. The result suggests that the anticipated carbon dioxide emission might be able to achieve under the transition to a low carbon economy mode. Different regions should have their own feasible plans through controlling the urbanization rate, slowing the economic development rate and through reducing the energy intensity, improving the energy structure.

Taiwan's small and medium enterprises (SMEs) play an important role to promote economic development. White paper on small and medium enterprises in Taiwan, 2004 indicated SMEs¡¦ numbers is 97.83% of whole industry. So SMEs is the main force in Taiwn¡¦s industry. According to National Science Council review SMEs in Taiwan engage in R¡®D activities facing the captial and technological barriers, and the percentage that accept government subsidy is 13%(National Science Council, 2000). The Deptartment of Industrial Technology (DOIT) of Ministry of Economic Affairs (MOEA), launched Taiwan's SBIR promoting program, mostly referred to the SBIR US version, in 1999 in order to encourage local start-up companies pursuing innovative research of industrial technologies and products. Rothwell & Zegveld (1982) research government innovation policy include technology and industry policy, classify three composes:Supply, Demand, and Environmential policy. In government R&D subsidy policy system can be distinguished to R&D procurement(Demand) and directive subsidy(Supply). The study compare to other country¡¦s R&D subsidy policy and refer to business technology strategy. The study uses the interview method to analyze the policy awareness of SMEs and confer the policy influence of SBIR subsidy policy. So far as bring up the suggestion of government R&D subsidy policy. Through interview analysis, SMEs represent in the beginning of R&D activities always face capital shortage and need technological assistance. The study propose government carry out R&D subsidy should replace monitoring control for concilling system. Government can match up national industry development way to alliance industry engage in specific R&D activity by government R&D subsidy policy. To sum up government can weighted the Demand and Supply side innovation policy to cooperate R&D subsidy policy system. So that government R&D subsidy policy can look after both side by stimulating SMEs innovation generality and promote national technology level to reach the full-scale policy achievements.