Game Analysis of Supplier under the Government Procurement Oriented by Self-Directed Innovation

It is the common practice of many countries that use government procurement to promote a nation’s self-directed innovation capability. Under the policy of our country’s government procurement oriented by self-directed innovation, this paper based on the theory of static game analyzes the game of suppliers in this activity. We found that there exist some risks when the policy is implemented and landed. The policy is likely to inhibit the innovation activities. We think that the following three measures such as adjusting the Government purchase of pricing strategy, evaluation strategy and punishment mechanisms will be helpful to cope with those risks.