Quality Improvement Competition Under The Technical And Patent Infringement

Competition is objective outcome of the market economy. It is in evitable among enterprises. Study on the competitive strategy of enterprise has experienced mostly three phases : initiation ,formation and discussion. For along time, Professor Poter had studied on the competitive strategy of enterprise by using the theory of industry organization. His theory is of practical importance and regarded as classic works about the field. As one of the two ways by which an enterprise can get competitive advantage, differential strategy can promote the enterprise growth and the industry development。The article has studied on the differential strategy from the aspect o f technology and patent infringement. By using the analytic way of Cournot Model of product quality differentiation, inducting the parameter of product quality improvement, and considering the costs when manufacturers improving the qualities of their products, we can get the threshold condition of quality competition, which is governed by the efficiency of quality improvement.When meeting the threshold condition, the improvement of quality not only increases the output level, the market share and profit level of the manufacturer, but also increases the output level of market.Because the threshold is governed by the parameter of product quality and the quantity of competitive manufacturers, we can find that the higher the parameter of product quality is, the greater the possibility of quality innovation will be, and there exists an optimal quantity of manufacturers (or an optimal industrial organization structure) which depends on the technical improvement efficiency and is favorable to the quality improvement innovation.The last, we considering the the manufacturer patent infringement, may can get the threshold condition of quality progresses in the free right infringement social environment. When meeting the threshold condition, patent infringement not only reduced the output level, the market share of the innovation manufacturer, and increases the output level, the market share and profit level of the infringement manufacturer, but also increases the output level of market. In order to protect the benefit of the innovation manufacturer, we analyzed the necessity and the limitation of the redemptive punishment and the punitive punishment...