Specialized and innovative small and medium-sized enterprises face technical uncertainty, concentrated operational exposures, and financing constraints during technological breakthrough projects. Technology insurance may support these projects through risk reduction services as well as compensation. This article develops a conceptual framework informed by insurance economics, innovation financing, organizational learning, and selected Chinese policy documents. It examines applications across research, pilot testing, commercialization, and industrial scaling and proposes mechanisms involving hazard identification, learning, financing continuity, and coordination. Implementation faces six barriers: limited insurability, information asymmetry, incentive misalignment, insufficient interdisciplinary expertise, fragmented responsibility, and weak evaluation. A proportionate governance model connects agreed diagnostics, verified implementation, milestone reviews, and sustainable cost sharing. The central argument is that services should reduce avoidable damage while preserving justified experimentation. The analysis generates propositions for future project-level research; it does not estimate causal effects or present illustrative scenarios as observed cases.

Yunan Song, Mingyue Yu, Yuxin Zhang, Liwei Bao. Applications and Barriers of Technology Insurance Risk Reduction Services in Technological Breakthrough Projects of Specialized and Innovative SMEs in China. Academic Journal of Business & Management (2026), Vol. 8, Issue 10: 73-81. https://doi.org/10.25236/AJBM.2026.081010.

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