Research On Investment Decision Of Cost-reducing R&D About Supply Chain Based On Uncertain Of R&D Effect

After enter the twenty-first century, with the rapid economic development, theperformance of the competition among enterprises is technological innovationcompetition. With competition among enterprises have gradually shifted thecompetition in the supply chain, and the R&D cooperation between enterprises in thesupply chain become the main form of technical innovation. In the vertical supplychain, the downstream enterprises shares the upstream enterprises’ R&D costs, thismodel is ubiquitous in the real production.This paper uses game theory to study the R&D investment strategy ofcooperation between the upstream and downstream enterprises in the vertical supplychain. First, with the case based on incomplete information, the paper establishes asimple supply chain model consisting of a supplier and a manufacturer, supplier andmanufacturer carry on a Stackelberg competition. R&D success rate assumed in themodel is an external parameter, and the paper assumes the price of the upstreamenterprises and downstream enterprises will be different after successfully developedby the upstream enterprises, the article under these assumptions developed threemodels include the supplier does not R&D, supplier does a separate R&D as well assuppliers and manufacturers jointly R&D; Secondly, on the basis of the above model,with the supplier R&D success rate within the biochemical,the paper establishes aseparate R&D as well as manufacturers and suppliers jointly R&D models; Then,considering the case of incomplete information, ie, upstreamR&D efficiency of thesuppliers is its private information, downstream manufacturers only know theprobability of the prior distribution of R&D success rate, for this manufacturerneed do information screening. Article based on the above establishes the equilibriummodel of the separation and the pooling equilibrium model of the upstream suppliers.Finally, the paper comes to balanced decision-making of each model, including thevalue of decision variables, their own profit, the supplier’s R&D investment levels,and the manufacturer’s apportionment, and compares the value of balanceddecision-making of each model and draws some meaningful conclusions. Accordingto the above model analysis of the results, the article puts forward constructive policyrecommendations for the enterprise that how to make R&D investment decisions.The innovation of this paper is to consider the impact of the R&D success on the sales price of downstream manufacturers and the wholesale price of the upstreamsuppliers n the basis of R&D effect of uncertainty,so this model is more realistic.Because the R&D efficiency is private information for suppliers, so manufacturerswill screen for this private information, in order to reduce the loss may suffer due tomissing private information. We hope the result of this paper provide sometheoretical support for small and medium enterprises with potential and developmentto do cooperative R&D.