Abstract

Government procurement has great advantages in reducing the uncertainty of innovation, expanding the demand for innovative products, making up for the positive externalities of innovation, and improving the quality of public services, which can directly promote innovation. The use of government procurement to promote innovation is a common practice in many OECD countries. These countries have developed legal or policy tools to ensure that government procurement fully promotes innovation, and integrate innovation goals with other policy goals to better address social challenges. However, in recent years, China has not attached importance to the role of government procurement in promoting innovation, which is not conducive to the development of innovation. By learning from the experience of OECD countries, China should restore and improve the policy design to make it more operable and integrate the goal of promoting innovation into other social goals.

Highlights

  • Government procurement has great advantages in reducing the uncertainty of innovation, expanding the demand for innovative products, making up for the positive externalities of innovation, and improving the quality of public services, which can directly promote innovation

  • The “decoupling” of government procurement from innovation policies in China suggests an insufficient understanding of China on the positive role of this policy, which is harmful to the technological innovation, leads to severe overcapacity in China, and holds China down at the low end of the global value chain in the international division of labor

  • The government can support innovative enterprises to carry out research and development activities through pre-commercial procurement (PCP) or forward commitment procurement (FCP), thereby reducing the uncertainty of technological innovation in the early phase

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Summary

Instruction

Manufacturing is the main body of the national economy and an important guarantee for social and economic development, which directly reflects the productivity level of a country. Governments around the world have gradually realized that when the demands for new technologies and new products emerge, the driving power for innovation of enterprises will increase greatly. The current political guidance documents on government procurement to promote innovation are still in a state of “failed”. Zhao Yu: Research and Implications on OECD Governments’ Procurement Policy to Promote Technology Innovation an important measure in developed countries such as Europe and the United States, to promote innovation and has received more and more support on the political level. Learning good practical experiences from foreign countries, improving the sense of public sectors to understand the benefit to combine government procurement and innovation promotional policy, and doing a proper top-level design, is of great significance to implement China's innovation-driven strategies and enhance overall national strength

Reducing Innovation Uncertainty
Expanding Demands for Innovation
Achieving Public Policy Goals and Improving Service Quality
Analysis of the Causes of the Controversy
Experience from OECD Countries
Government Procurement Is a Popular Way to Promote Innovation
Different Policy Tools to Support Innovation Procurement
Targets and Results of Innovation Procurement
Combination of Innovation with Other Policy Goals
The Enlightenment to China
Formulating Operational Rules
Balance Between Innovation Goals and Main Goals
The Target of Government Procurement Extends to the Non-competition Stage
Summary
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