Research On Government Procurement Policy Embeddedness In Generic Technology Innovation Process

Technology innovation is an important engine driving China’s development and rejuvenation. However, generic technology is characterized as complexity, spill over, and public goods, and therefore lead to the dual paradox of market failure and organization failure. Simply rely on the market mechanism in distributing the generic technology innovation resource give rise to the undersupply of generic technology innovation in the market. To solve the dual paradox, policy support is needed. By learning international advanced experience, we found that government procurement could be used as a policy tool to promote generic technology innovation, and it played a critical role in promoting generic technology innovation cooperation, balancing the individual benefit and the public benefit of generic technology innovation.Based on generic technology innovation theory, government procurement theory, government intervention theory, game theory and social embeddedness theory, this research investigated the embeddedness effect of government procurement policies in technology innovation and diffusion. From “embedded process—embedded function—embedded mode” perspective, this study analyzed policy embedded route in technology innovation and diffusion, and explored the government procurement policy embedded framework. In addition, this study constructed the generic technology innovation bearing industry selection model and generic technology innovation cooperation partner selection model. This study took the Three Gorges Project as example, examined the embeddedness of government procurement policy in the innovation process of large waterwheel power generation equipment manufacturing technology, which was employed to verify the effect of the practical application of the government procurement policies embedded innovation theory. Moreover, to solve the lack of orientation mechanism exited in the government procurement policies, the government procurement policies embedded optimization strategy was proposed.First, this study provided precise definition of key construct in the generic technology innovation process and the generic technology innovation oriented government procurement. Game theory was introduced to analyze how government procurement policy exerted impact on technology innovation and diffusion. The results suggested that government procurement policy mainly took effect in three aspects: transferring innovation signal, creating new market demand and balancing social benefit. Based on the embeddedness process, embeddedness function and embeddedness mode perspective, this study analyzed how government procurement policy embedded in three key stages of generic technology innovation process: innovation decision making stage, R&D stage, and innovation application stage. Based on the proposed framework, this study examined them separately in the following chapters, which provided new ideology for technology innovation policy research.Second, government procurement policy embeddedness process were thoroughly analyzed, and government procurement policy embeddedness theoretical framework was testified from the embeddedness process, embeddedness function and embeddedness mode perspective. To begin with, the generic technology innovation bearing industry selection model was proposed. Taking from the association embed, afterward association embed, sideward association embed, this study proposed a framework for the selection of prioritized embed industry, leading the firms to make generic technology innovation decision. Next, major industry innovation partner selection model was proposed. The model provided answer for who should be chosen to corporate in generic technology innovation. The model could improve the efficiency of generic technology innovation via the introduction of procurement contract, and it provided reference for the selection of government procurement embedded policy. Last but not least, in order to balance the profit distribution of technology diffusion efficiency and fairness, strategies facilitating innovation diffusion was put forwarded. On the one hand, by generating critical point, cultivating innovative technology adopt agents, and offering free innovative product and service, the policy could create the generic technology innovation market and satisfy the individual benefit of the developers. On the other hand, the policy guide the diffusion of generic technology to all orders of society, narrow the social return gap of technology innovation and meet the needs of the community for public supply of generic technology to make the public share technology innovation gains.Third, case study was employed to uncover the government procurement policy embedded technology innovation and diffusion process. By analyzing what and how government procurements policy took effect on water turbine technology innovation and diffusion, the study concluded general laws and specific experience, and testified government procurement embeddedness theoretical framework. The results provided theoretical support for government’s decision-making in procurement policy.Finally, technology route foresee approach was introduced. Due to the inefficiency of general government procurement policies in promoting technology innovation and diffusion, optimal and feasible strategies were proposed from the perspective of embeddedness process, embeddedness function and embeddedness mode. The proposed strategies and technology route provided strategic support for the government to make scientific and systematic procurement policies in promoting technology innovation and diffusion.