A Comparative Study On The Policy Mechanism Of PCP And R&D Subsidy

Market failures and system failures caused private R&D investment to be below the social optimal level and lead to insufficient innovation.Scholars generally believe that innovation policies can solve this problem to a large extent.Governments use innovative policy tools to promote interaction between innovation actors and the establishment of clusters and networks to promote learning and innovation among the various elements of the innovation system.Along with the continuous improvement and development of traditional supply-side innovation policy tools such as R&D subsidy,a series of new innovative policy tools have emerged,the most notable of which is the PCP proposed by the European Union.The government's policy tools are unique.Even if there are similarities in the formulation and operation of some policy instruments,there will be essential differences.Therefore,governments are committed to improving the performance of innovation policies through the rational use of innovative policy tools.At present,supply-side innovation policy tools are the main form of innovation policy in various countries,but the demand-side renaissance of innovation policy tools has become a trend of evolution.PCP is a demand-side innovation policy tool,and R&D subsidy is a supply-side innovation policy tool.They have similar similarities in form and are easy to cause confusion,but in principle,PCP has its unique characteristics and value.PCP is the development and extension of R&D subsidy,and there is complementarity between the two.This paper first uses literature analysis to explore the connotation,participants,processes and effects of PCP and R&D subsidy.It believes that PCP is a public procurement commitment to R&D services,and is an innovative public procurement method,which aims to stimulate the organization to conduct research and innovation.PCP mainly includes three participants: public purchaser,innovation provider and intermediary.It has three stages: solution design,prototyping and product testing.R&D subsidy refers to the government's support for R&D activities of enterprises,universities,and research institutions through grants,tax incentives and interest subsidies,which ultimately contributing to innovation.It includes three participants: public providers,innovation providers and intermediaries.It has four stages: project establishment,project implementation and development,project results acceptance and project results transformation.The difference is that the role of PCP is to support broader policy objectives,promote the development and growth of small businesses,promote new market participants to enter the procurement market and improve the efficiency and quality of public services.The role of R&D subsidy is as follows: a broader range of policy roles,promoting the development and growth of various types of businesses,obtaining external financing and stimulating more private R&D investment.Secondly,based on the life cycle perspective of science and technology project,this paper uses case study method to select CHARM,IMAILE,Binhai New Area science and technology small giant plan and torch program software industry Base to carry out case analysis and cross-case analysis,from which to summarize and compare the operation mechanism of PCP and R&D subsidy,and explore the nature and relationship of the two.Through case analysis,this paper builds the operational mechanism model of PCP and R&D subsidy,and refines the operating mechanisms: screening mechanism,process management mechanism and results management mechanism.PCP and R&D subsidy will operate and play a role through these three mechanisms,but each mechanism differs in project participation phase and the internal operations.The screening mechanism of PCP runs through the management process,covering the whole process of solution design phase,prototype phase and product testing phase.The internal mechanism includes target-oriented mechanism and competition mechanism.The screening mechanism of R&D subsidy is the project establishment process,and its internal mechanisms include cooperation mechanism,incentive mechanism and signal mechanism.The process management mechanism of PCP includes the solution design phase and the prototype phase.The internal mechanism includes the supervision mechanism and the interaction mechanism.The process management mechanism of R&D subsidy is the implementation phase of the project,and its internal mechanism is mainly the inspection mechanism.The results management mechanism of PCP is the product testing phase,including the measured evaluation mechanism.The results management mechanism of R&D subsidy involves the completion and acceptance phase and the outcome transformation phase,including the management of learning effects and knowledge effects.Finally,this paper proposes that we should pay attention to the application of PCP policy,strengthen the application of demand-side policy tools and explore the application of policy tool combination.The research on this topic will not only provide a new perspective for research on PCP and R&D subsidies,but also help policy makers to properly understand and implement PCP and R&D subsidies policies.The application of the PCP and R&D subsidy policies is designed to help companies undertake private research and development activities that benefit society.