Strategic Selections In Technology Innovation Of Our Country’s Software Outsourcing

While the goods trade is developing, our country’s service trade develops rapidly. Softwareoutsourcing is an important form of developing service trade, whose development speed is fasterthan goods trade. However, our country’s software outsourcing is in the cost-driven stage. Thebusiness, which is undertaken by software outsourcing, is mainly low-end service. There is noadvantage in technology of software outsourcing. Therefore, technology innovation is theinevitable choice of software outsourcing undertaking high-end service. The software outsourcingexists strategic selections——independent innovation and imitative innovationort in technologyinnovation.Based on the perspective of evolutionary economics, the evolution model is established in theenvironment of resource-constrained, considering such factors: independent innovation profits(independent innovation gains, research costs, strategic trade policy), imitative innovationprofits(imitative innovation gains, imitative innovation costs),contracting share. The evolutionprocess is analyzed and simulated numerically. The main contents are as follows:1. From the perspective of static evolution, the paper analyzes the process of strategicselections in technology innovation. The research shows that each factor in the models hasdifferent effect on strategic selections of technology innovation. It’s helpful for softwareoutsourcing choosing independent innovation by inceasing independent innovation gains,decreasing research costs, implementing strategic trade policy, decreasing imitative innovationgains, inceasing imitative innovation costs, inceasing contracting share.On the contrary, choosingimitative innovation.2. From the perspective of dynamic evolution, the paper analyzes the process of strategicselections in technology innovation. The research indicates that strategic selections in technologyinnovation of software outsourcing will evolve into a stable state when meeting certain conditions.(1) When independent innovation profits and imitative innovation profits are equal, if softwareoutsourcing choosing independent innovation (or imitative innovation) has more contracting share,then the stable strategy is independent innovation(or imitative innovation).(2) When independentinnovation profits and imitative innovation profits are different, even if independent innovationprofits (or imitative innovation profits) are not enough, but its contracting share reaches certainamount, the stable strategy is independent innovation(or imitative innovation). Finally, the results are proved by the numerical simulation experiments, and policy proposalsare put forword, such as the government should implement the strategic trade policy, softwareoutsourcing enterprises should strengthen the construction of their own.