Comparative Research On R&D Investment Strategy Of Duopoly Based On Competition Cooperation Model

With the new “the Belt and Road” policy,enterprises are stepping into international market further and further,the R&D cooperation and competition between enterprises are more intense and frequent.And the innovation capability has become the most important driving force and core factor for the enterprises to stand out from the competition and maintain the market share.The research about R&D in our companies started a little later than the abroad ones,and there are still some gaps between us on the R&D overall strength.The past researches on the impact of the technology spillovers,cooperation level and ways is still lack of in-depth analysis.At the same time,most of the previous research used linear R&D probability function,but enterprise R&D probability is more depended on non-linear relationship.In view of the above phenomena and problems,this paper is going to carry on a further research on the basis of the previous,which is expected to establish more accurate models when considering technology spillovers,non-linear R&D success probability function and cost allocation ways in order to provide better suggestions for enterprises' development.We put forward this research under the background of intensified market competition and urgent demand for R&D innovation.Based on previous research about cooperation or non-cooperation and with technology spillover or without spillovers,this paper conducts a systematic study on whether the competitive duopoly takes cooperation and if the spillovers are taken into to account through model construction and the numerical simulation analysis,which includes monopoly business' s comparison between single-stage and two-stage decision making,duopoly business' s comparison between cooperative R&D and non-cooperative R&D in product competition market when considering about spillovers,different modes of cost-sharing in duopoly R&D cooperation and a comparative profits analysis under cooperation or non-cooperation situation.And the simulations shows that non-cooperation duopoly business would get the best benefits and cooperative duopolies would get more when choosing cost reduction allocation mode.Firstly,this paper designs the whole writing ideas and structure of the article.Using theory to build the model,the first part's writing ideas is divided into the following aspects: considering the impact of one-stage and two-stage R&D investment on the profits of the enterprise under the monopoly condition.Setting up model and simulation parameters lays the foundation for the follow-up modeling and simulation analysis.Secondly,according to the theory and the previous research,this paper ' s model is combined with the technology spillover factor and the non-linear probability function.And the model is divided into four specific parts,which are constructed and simulated respectively.It can be seen from the simulation results thatthe non-cooperative duopoly business in the case of non-technical spillovers will make the largest market profits respectively.And the two companies will get the lest profits when they choose to invest R&D respectively and use the spillover technology from the other competitor,and the profit gap is enormous compared with the former situation.Thirdly,in order to carry on a further comparative analysis,this paper constructs the enterprise investment profit function models under different cost allocation mode of cooperative duopoly enterprises.And through simulation analysis,the influence of the different cost allocation mode to the R&D investment and the cooperation profits can be obtained.Finally,all the classification cases of comparative analysis are compared with an expect to provide theoretical basis for the follow-up research and give the corresponding guidance and advice for enterprise R&D investment decision making by empirical results.