Industry Integration Oriented Enterprise Innovation Investment Decision-making Research

Since the1990s, the breakthrough development of the digital industry, enables us to see some industries began to blur the boundaries of the industry among the trend of Industrial convergence, with further rapid development of industries such as new materials, new energy, new medicine, bio-breeding, information technology, ocean engineering and other emerging industries, it is foreseeable that the increasingly wide range of industrial convergence, will also play an unprecedented impetus to economic development. In fact, industrial convergence has been accompanied by the evolution of industry. The convergence of industry often occurs in traditional industries and emerging high-tech industries, using high technology to transform traditional industries within the mode of production, reconstruction of the value chain and value creation process, coordinating inter-industry competition relations, changing the market structure of the original industries and blurring industry boundaries between industries with common technology and market. The innovative behaviors of firms have also greatly accelerated the industrial convergence.From the microeconomic point of view of industrial convergence, the dissertation argued that industry convergence is the industrial innovation behavior with grafting operations of tangible or intangible resources between existing industries and other industries.Its essence is to change the momentum of innovation and change behavior of the original operator, including technical skills, products, processes, management organizations and market innovation. Based on industry investment of convergence-oriented R&D, this dissertation try to reveal the innovation mechanism of firms.Major contents of study and research findings include:1) A summary of existing investment decision theory. Traditional investment decision-making methods and the development of real options and option game theory were reviewed. A summary of the traditional investment decision-making focused on payback period, net present value, internal rate of return, decision trees, sensitivity analysis, Monte Carlo simulation method, and then focuses on the real options theory and option game theory including the concept, classification and characteristics. The above chapters laid the methodological basis for full-text Methodology.Based on investment in convergence-oriented industrial R&D, recent research review.of the option game theory is given. 2) Studied the relationship of industrial convergence and business R&D.The dissertation focuses on intrinsic characteristics of industrial convergence and related innovation mechanism. Then, the dissertation argues that corporate innovation is the essence of industry convergence and further expansion of Schumpeter’s innovation theory.3) Based on characteristics of the Industrial convergence-oriented business innovation, option game analysis model of business innovation investment is established. Under the model assumptions of huge investment and future market uncertainty, Game equilibrium and the corresponding equilibrium strategies is given.4) Established a subsidy model because of a war of attrition between firms facing high uncertainty of convergence-oriented innovation.A subsidy factor is given though a subsidy model under competitive market.5) Based on business innovation policy and practice at home and abroad, further discussed innovation subsidies policy.Main innovation is as follows:1) Discussed the microeconomic mechanism of industry convergence and pointed out that business innovation is the key of industry convergence though a study on microeconomic principal, concept, type and power of industry convergence.2) Though the option game theory and methods, convergence-oriented investment decision-making mechanism is studied and the corresponding equilibrium strategies is given.3) Make the model of Option game more suitable for convergence-oriented investment decision.4) The firms are willing to wait for a favorable chance to start investment under the high uncertainty of convergence-oriented investment, which often lead to a war of attrition. The dissertation introduced the subsidy factor of convergence-oriented investment and made a exploratory discussion.