The Impact Of Government R&D Subsidies On Corporate Technology Choices

The contradiction between China's population,land,environment and resources has become more and more serious along with economic development.China's strategic emerging industries continue to accelerate the pace of technological R&D and innovation,and China's sustainable economic development is receiving technological Whether continuous improvement and innovation can have an in-depth impact.In order to strengthen the main position of China's enterprise technology innovation and cultivate and develop strategic emerging industries,the Chinese government has successively introduced a series of fiscal and financial policies to promote the government.As of 2019,the government has extended the relevant inclusive support for R&D innovation investment to All businesses.Throughout the world,the core of sustainable economic development in developed countries such as Europe and the United States is also aimed at improving the level of technological innovation of domestic enterprises through the guidance of the government,achieving product transformation and upgrading to adapt to social and economic development,and enhancing international competitiveness.At present,vigorous development of emerging industries has become an inevitable trend of development at home and abroad,and subsidy policies have become the primary way for governments to encourage enterprises to increase R&D investment and encourage enterprise innovation.By combing most of the literature on the impact of government subsidies on R&D investment,the authors found that most scholars still support the government to guide this through subsidies.Promote enterprises to carry out technological innovation research and development,and the related research is mainly based on empirical experience.The research only considers the manufacturer's unit production cost as a linear situation,and does not consider the manufacturer's production cost nonlinear situation,that is,the scale is not economic.At the same time,the development of strategic emerging industries not only conforms to the current economic development background,but also meets the increasing consumer demand for product functions and social needs,and guides people to form positive consumer concepts.Empirical studies have shown that social impacts can influence consumers' purchasing decisions,expand the uncertainty of product demand and thus affect corporate profits,which in turn affects corporate-related strategic choices.There is no relevant impact study on the role of social impacts in the production of disruptive products in strategic emerging industries.Therefore,this paper studies the impact of government R&D subsidies on corporate technology choices from the following aspects.First,the impact of government R&D subsidies on the strategic choices of strategic emerging companies is studied.The Hotelling model under the duopoly competition market is established.The game theory is used to obtain the optimal price and the optimal profit of the manufacturer in each decision model,and the model results in different situations are balanced.The study found that under the linear situation of production costs of the two enterprises,the government's R&D subsidy ratio will prompt enterprises to make decisions on the selection and production of disruptive products.When enterprises choose to produce disruptive products or general products,enterprises will choose to produce subversive products at the same time when the proportion of government R&D subsidies is low.However,although the production of disruptive products is Nash equilibrium,the enterprises compete because of vicious competition.There will be a prisoner's dilemma,and ultimately the strategy is to choose to produce a general product;and in the case of a high proportion of government R&D subsidies,companies will probabilistically produce disruptive products,and government R&D subsidies will increase the incentives for companies to produce disruptive products.Secondly,on the basis of the government's provision of research and development subsidies,an in-depth analysis of the technological choices of strategic emerging enterprises under the influence of social influence was carried out.The study found that under the linear situation of production costs of two enterprises,the demand for disruptive products further increases consumer utility due to social influence,and the two enterprises will make decisions to produce disruptive products.However,although the production of disruptive products is a purely strategic Nash equilibrium,at this time,since both companies choose to produce subversive products and divide the whole market,the profits from the production of disruptive products or the production of general products are the same.Since both companies have invested a large amount of disruptive technology research and development funds,which has increased the production cost of the enterprise,compared with the production of general products by both companies,both companies have lower profits from producing disruptive products.The prisoner's dilemma appeared,so the final choice was to produce a general product.Finally,considering the uneconomic situation of the manufacturer's production scale,we will further expand the strategic choice of the enterprise,and establish a government R&D subsidy model and social impact model under the scale of economy.The study found that: under the uneconomic scale of production,government R&D subsidies will still encourage enterprises to choose subversive product development and production.However,unlike the linear situation,when companies choose to produce disruptive products or general products,in the case of a low proportion of government R&D subsidies,enterprises will have prisoner dilemmas,so they choose to produce general products,while the proportion of government R&D subsidies is moderate.In the higher case,the uneconomic scale makes the company's production of disruptive products more powerful.Further,considering the scale uneconomic situation under the influence of society,the two enterprises have a mixed Nash equilibrium.When the cost of disruptive product development is low,companies produce probabilistic products with probability;with the greater social impact coefficient,the greater the incentive for companies to produce disruptive products.At the same time,as the government's subsidy for new energy research and development is higher,the company's ability to produce disruptive products is also greater.When the cost of disruptive product development is high,Enterprise 1 and Enterprise 2 only produce general products.Different from the research of prior art innovation,this paper finds that increasing government subsidies is not necessarily conducive to the development of enterprise technology innovation research and development.There is a certain ratio of government R&D subsidies,corporate decision-making will be affected by social influence factors,and production cost scale is not economic.Will affect the change of corporate decision-making,which provides a reference value for the government to effectively provide research and development subsidies to encourage enterprises to carry out technological innovation and research and development.