The Character Of Vertical Relationship In Equipment Manufacture Industry And Innovation Strategies Of Companies

Equipment manufacturing industry has great impact on the national economy and the people's livelihood, play a very important role in national economy. Now, equipment manufacturing industry in our country has lagged behind developed countries and some new developing regions, so, it is imperative to promote adjustment and reconstruction of our industrial structure in equipment manufacturing industry. Accordingly, to make the innovation strategies of companies and strengthen the efficiency technology innovation is the only way to brace up the equipment manufacturing industry in China.Based on the character of vertical relationship in equipment manufacture industry is up and downstream monopoly, this paper builds a model. The solution to calculate for the motivation of downstream cooperative innovation we employ is the Shapley Value. And then, we make an outcome on the option of the downstream company.By means of the outcomes, we have two conclusions. When downstream firm own the part of the technical asset, the motivation of downstream cooperative innovation will be brought. Under a discriminatory technical asset auction, regardless of whether there exists internal bargaining or directly competition between downstream firms, the downstream company will always prefer to cooperate with an independent rather than to an established upstream firm who had a close relationship with the downstream company before. Then we analyze the character of industrial structure and the motivation of downstream cooperative innovation even with the opinion the downstream company will make in the machine tool industry. Given this, the paper is of very important significance for government to establish policies, promote the adjustment and upgrade of equipment manufacturing industry.