Influence Of Government Procurement On Firm Technological Innovation:Micro And Different Effects Analysis

With the increasingly fierce international competition,the speed of technological revolution and technological iteration continues to accelerate.Many country regards technological innovation as an important strategic element of national development.In terms of innovation incentives,demand side policy incentives represented by government procurement are expected.Foreign experts have made a comprehensive analysis of the incentive effect of government procurement on technological innovation.In China,the research on government procurement policy started late,mainly focus on the performance evaluation of government procurement policy,the empirical test of the relationship between government procurement and technological innovation,and the comparison of domestic and foreign government procurement systems.As an effective way to intervene the economy,government procurement can reduce the risk of market instability and misdirection,win more time and financial support for technological innovation,and improve the enthusiasm of firm to participate in innovation activities.As a representative tool of demand side,government procurement plays an increasingly important role in encouraging technological innovation and promoting economic and social development.However,until now,the research perspective in this field is relatively macro,and previous studies are more theoretical,which lack of empirical evidence,thus further research is needed.Therefore,it is of great significance to sort out the relationship between government procurement and technological innovation and figure out the underlying mechanism from a micro perspective.The core question to be solved in this study is: from the micro perspective,whether the government procurement in the Chinese has a positive effect on the technological innovation of firms? Will the incentive effect of government procurement on technological innovation vary with different types of firms? In order to answer the above questions,this study reviews the relevant research systematically and summarizes the development of domestic and foreign government procurement system and the evolution of government procurement function.Then,this study integrates market failure theory,government intervention theory,public management theory and demand and supply theory,and reveals the inevitability and internal logic of government procurement promoting technological innovation based on theoretical analysis.After that,this study tries to figure out the mechanism under the relationship between government procurement and technological innovation.At the same time,from the micro perspective,using the data of Listed Companies in China’s manufacturing industry,this study constructs a panel data econometric model and further uses the propensity score matching(PSM)method to explore the difference effect for different types of firms.The empirical analysis results show that government procurement has a significant positive role in promoting technological innovation of enterprises,and its promotion degree will be affected by factors such as industry,technology type and ownership.According to the empirical results and theoretical analysis,from the two perspectives of government and enterprises,this paper puts forward the policy recommendations of government procurement for the purpose of promoting technological innovation,in order to give full play to the role of government procurement in promoting innovation to a greater extent.