Vertical R & D Alliance Formation

Along with increasingly fierce business competition, competition environment varies fast, and the boundary of enterprises becomes more and more misty, R&D's alliance is receiving more and more attention from the theoretical and industrial circles as well. R&D's alliance can increase the income of the allied parties and the whole alliance's, however, the business information which each participant holds is unsymmetrical, there exists many rational game relations. This text analyses the game between the enterprises who participate in the lengthways R&D's alliance in two instances with different frames, and then further studies how the anticipative revenue of the enterprises who participate in the lengthways R&D's alliance and its influencing factors influent the form of the lengthways R&D's alliance.Firstly, this paper elaborates the reality meaning of topic , reviews related research at present, puts forward some problems to be solved and structure frame; secondly, it analyses the definition and classification of the strategic alliance, then define the R&D's alliance and its characteristics; thirdly, analyses the reason R&D's alliance formation from both inner and outer side. And on this foundation, this paper studies the risk of R&D's alliance, the principia and the factors need to be considered of the revenue distribution. It then analyses the game between the enterprises who participate in the lengthways R&D's alliance in two instances with different frames, ,and on the base of the model of the lengthways R&D's alliance, it continues to discuss the factors which influence its formation and which influence the cost. Last but not the least, this paper further discusses how the long-term revenue influences the choices of the enterprises.