Signaling and accrediting new technology: Use of procurement for innovation in China

Abstract

In China the use of public procurement as an innovation policy instrument has been closely associated with the drive to promote indigenous innovation. Implementation was largely through the use of catalogues intended to signal and to formally accredit the supply and demand of technologically-oriented products. This paper reviews these experiences by examining the wider context and three case studies. Accreditation is shown to carry a risk of protectionism. Signaling performs a function analogous to a technology roadmap and was assisted by giving listed technologies priority for public procurement. For both types of instrument the intended mechanism did not work as planned but the broader role they sought to fill was an important factor in bringing innovations to market. The appropriateness and effectiveness of such instruments are shown to be dependent upon the state of both the innovation and the procurement systems in which they are set.