Research On The Formation Driver And Mechanism Of Knowledge Alliance Based On Game Theory

With the advent of Knowledge Economy, knowledge becomes one of the scarcest elements of modern enterprise. When an enterprise cannot completely meet the demand for knowledge, it often resorts to a new way to obtain external resource from Knowledge Alliance. So the knowledge transfer between enterprises becomes much more important in the global scope. Knowledge Alliance not only creates vast space for knowledge flow, transfer, sharing and application, but also can increase knowledge stock and avoid innovation risk effectively. However, due to every alliance enterprise's different goals and interests, has relatively independent system and cultural operation mechanism, controls independent resources, even runs completely different knowledge management system, so in practice, the effect of Knowledge Alliance is not ideal. In this context, Knowledge Alliance has been concern by more and more domestic and foreign academic and business, so this paper will research the formation driver and mechanism of Knowledge Alliance.After reviewing related literatures at home and abroad, the study finds that the research of Knowledge Alliance and knowledge sharing (the main realization mode of Knowledge Alliance) in our country begins lately, and most previous literature and researches are on the knowledge sharing among internal staffs or team members, or around the influence factors of knowledge sharing, the prerequisites of technical knowledge sharing, how to choose alliance partners and so on. Most of their studies took the Knowledge Alliance as a black; pay little attention to the mechanism of Knowledge Alliance, the Union process among organizations, whether the Knowledge Alliance cooperation mode is better than innovation singly or other cooperation modes, and basing on which proportion to share to gain profit as much as possible. Through the application of the qualitative and quantitative theory, this paper systematically analyzes the formation driver and mechanism of Knowledge Alliance based on game theory.In addition, this paper designs dynamic, process, risk and incentive mechanism of Knowledge Alliance based on the government subsidies. The purpose of this paper is to reveal the important factors and mechanism of Knowledge Alliance, and understand some inherent law of it.Firstly, this paper elaborates external motivation of Knowledge Alliance from macro and micro context, and then gets the internal motivation from resource sharing or complementary, cost and risks sharing, achieving economies of scale and scope, and gaining competitive position and so on, that analyzes completely the drivers of Knowledge Alliance development. Then based on the classical game model "prisoner dilemma" and the cooperative enterprise's desired profit, this study researches how does the partners' general behavior work on the formation, development and termination of alliance. In other words, we explore the primary influences of the Knowledge Alliance's stability. Then the paper builds a three-stage duopoly model under initial cost asymmetry, and analyzes how the equilibrium level of R&D investment, equilibrium profit, consumer surplus and social welfare change as well as the main factors under three modes(non-cooperation, R&D cooperation and knowledge sharing). Lastly, we study successfully how the initial cost asymmetry affect the equilibrium results, and get some useful conclusions, which provides theoretical basis for enterprise to choose knowledge sharing not other modes, and decision-making basis for them to improve sharing efficiency. To make the conclusions clear, this article also use simulation software MATLAB to simulate the three modes, and get the conclusion that knowledge sharing plays an important role in improving the level of R&D investment, corporate profits, consumer surplus and social welfare. However, Knowledge Alliance is a double-edged sword. When it is successful, it will reduce the uncertainty of business development, and enhance the core competitiveness of enterprises, but the failure of it is not a simple failure, the company may face a loss of product, customer and market, marketing strategy, strategic planning, core competencies and other intellectual property rights, or even lose the entire company, fall into strategy and operations dilemma. Chapter 6 firstly recognizes the risk of Knowledge Alliance from overall, and puts forward some corresponding preventive measures, then analyzes and simulates the opportunism behavior which is the main risk of alliance. In addition, from the government R&D subsidies to alliance enterprises' innovation phase, this paper designs an incentive mechanism of innovative achievement. The research results put some useful suggestions for alliance partners to improve alliance relationships, increase profits, and prevent alliance risk. In the end, we summarize the main research results and points out the existing problems and future research direction.