| Both theory and practice have demonstrated a truth: the development of agricultural product process industry relies on the technology innovation. The innovation of agricultural product process technology is a continuous process, and reveals its effect in a form of technology innovation chain. Thus, the determination of the definition concerning the technology innovation chain, identification of the operation mechanism of the technology innovation chain will be significant, both the oretically and practically. Due to the reason that the agricultural product process industry involves a bunch of fields; this research selects dairy product field as a demonstration to carry out the operation mechanism study of agricultural product process industry.The determination of this research originates from an important scientific research project:"Operation Mechanism and Policy Study on Technology Innovation Chain of Agricultural Product Process Industry in Hubei Province"sponsored by education bureau of Hubei province. A combination of literature review and data analysis, as well as innovation theory, technology innovation theory and game theory were adopted in this study to carry out the study. First, a review and evaluation of domestic and international researches on the technology innovation and innovation chain was performed; second, an analysis of the current diary production industry in China was carried out to obtain a general understanding of the industry, and an element analysis of dairy product technology innovation chain was followed. This research split the technology innovation chain into four elements, including: subjective key element, objective key element, supporting key element, and power key element, and discussed the operation processes and related issues of each element. Based on that, operation mechanism of innovation chain of agricultural product process industry, exemplified by diary product field, was constructed, including fundamental research, application research, and the operation mechanism during the Industrialization development phase. Four recommendations were proposed to improve the effective operation of technology innovation chain in dairy product field. The construction of the operation mechanism provides a theoretical guide for the technology innovation chain study, and is significant to accelerate the establishment of innovation system of agricultural product process industry. |