Abstract: Based on certain theoretical assumptions, the internal and external factors of technology diffusion in the Bass model were respectively related to the role of the market and the role of the government, and the functional relationship between the government role and the market role was established by focusing on the“crowd-out” effect of the role of the government on the market. The functional relationship between the two was used to transform the Bass model so that it can portray the influence of the government's role on the diffusion speed and time path of the industrial General Purpose Technologies. Based on the transformed Bass model, the optimization was constructed with the goal of maximizing the diffusion rate of technology in order to obtain the optimal effect of the government. From the optimization, it was known that the greater the“crowd-out” effect of the government role on the market, the smaller the optimal effect of the government. The article also carried out numerical simulation based on relevant data and verified the validity of the model. The study argues that due to the“crowd-out” effect of government intervention on the market, it is necessary to grasp the optimal intervention force, that is, the optimal effect of the government in promoting the diffusion of industrial General Purpose Technologies, and on the basis of quantifying the effects of government and the market, the optimal effect coefficient of government solved can provide a theoretical measure for the government's intervening in the diffusion of technologies effectively and properly.