Research On R&D Strategy Of Corporation Based On Network Externalities

With China's development of economy, market mechanism is becoming perfect and the open extent is constantly improved. More and more corporations take part in international competition. Innovation is the core strength in corporations' competition. Corporations' innovation achievement from R&D activities is the physical base on which corporations beat other rivals. Nevertheless, how to make corporations' innovation achievement into profit is a problem in the face of corporations. The innovation activities of industries with network externality appear some characteristics. There is some relativity between corporations' R&D strategy. The technology which market chooses may be the second best. In the result, analyzing the impact of network externality on corporations' R&D activities, researching on the rule of corporations' R&D activities with network externality and giving suggestions on China's corporation acts important realistic meaning.Firstly, this article analyzes the impact of network externality on corporations' R&D activities. The R&D activities of corporations in industry with network externality appear some relativity. At the meantime, the article analyzes network externality's conception, source and impact elements and concludes the special character of R&D strategy of corporations with network externality. Standard competition and compatibility choice are two most important aspects of R&D strategy of corporations with network externality.The third chapter of the article takes apart the character of standard competition based on the analyses on differences between product competition and standard competition. Then, it analyzes relations between compatibility in one generation and compatibility between generations. The article importantly defines lateral compatibility in one generation. It researches on the impact element of network externality on corporations' R&D strategy through model meaning. It gives strategy analyses on standard competition and compatibility choice. In the end, it analyzes DVD and 3G industry's standard competition and compatibility choice and gives suggestions on R&D strategy of China's corporations with network externality.