Study On R&D Incentives And Innovation Strategy Of Firms Based On Network Externalities

Technological innovation is an unceasing driving force making country move forward. Thereamong, R&D activities, a significant strategic way for firms to enhance the competitiveness plays an important role in technological innovation. To the accompaniment of the developing of net-economy and hi-tech industry, more and more industries display the characteristic of network externalities which endowed with demanding economics of scale, exerting great significance in market technology choosing, new product introducing and firms'R&D.Under network externalities condition, technological innovation of firm displays a different characteristic from conventional industry, R&D competition becomes more and more fierce. The purpose of this paper is to seize characteristic of R&D spillovers under network externalities market condition, using game-stage research method, build the theory model, inspecting firms'R&D incentives, and brings forward innovation stragtegy fit to those firms having network externalities characteristic.Relevant documets have been summarized in the 1st chapter, including fundamental firms'R&D incentives, firms'R&D incentives under network externalities condition, R&D spillovers and R&D cooperation incentives. The concept, characteristic and origin of network externalities and network market characteristic have been analyzed in 2nd chapter, concluding technological innovation characteristic under network externalities market condition.Using two cost-reducing R&D model, the 3rd chapter and 4th chapter study on R&D behaviors in R&D incentives and R&D cooperation incentives of firms. The characteristic of network externalities and R&D spillovers have been introduced in models.Based on the model of D'Aspremont & Jacquemin, in 3rd chapter, the paper builds a duopoly model to inspect cooperation incentives aomong horizontal (compete) firms, comparing firms R&D noncooperation and cooperation effect to firms'profit and the welfare in compatible product market, then by wielding differentiation model to inspect cooperation incentives in vertical enterpises, gets a conlusion that R&D cooperation is better than R&D noncooperation and firms have to make R&D cooperation under network externalities market condition. relationship between R&D spillovers and R&D level in firms, the paper looked upon compatibility decision as one part of firms'R&D behavior, have analysed innovation and compatibility factors under network externalities market condition.Owing to the above theory model analysis, the main body of 5th chapter has brought forward innovation strategy of firms under network externalities market condition, improving the firm technology competitiveness, to fit competive environment under network externalities market condition.In 6th chapter, the case of the next generation standard competition in DVD market has been quoted, accommodating more factors, further, verifying and perfecting analysis of the preceding theory model and conclusion of analytical tactics. In the end, the conclusion has been reached and further study has been suggested.