Research On Closed-Loop Supply Chain Network Equilibrium Considering Technological Innovation And Government Subsidies

Technological innovation capability is the core competitiveness of enterprises,the fundamental guarantee for enterprises to survive in the market without being eliminated,and the fundamental guarantee for inheritance and continuation.It is also an important topic of academic research.With the development of economy and the consumption of resources,remanufacturing production has become the mainstream production mode in modern enterprises.To promote the development of the remanufacturing industry,the government will provide remanufacturing subsidies to closed-loop supply chains.Therefore,it is of great significance to study technological innovation and government subsidies in closed-loop supply chain networks.This paper constructs a network equilibrium model for two types of remanufacturing modes: outsourcing and authorization.By changing innovation and subsidy parameters,equilibrium decisions,changes in corporate profits,and environmental pollution are obtained and compared.The results show that:(1)Whether it is the outsourcing mode or the authorization mode,OEM’s low investment technological innovation will enhance the profits of itself,distributors,and 3PR.High investment in technological innovation can lead to excessive cost burden and a decrease in profits for OEM and distributors.Therefore,OEM should accurately control the cost burden brought by technological innovation,improve their ability to bear risks,balance the relationship between cost and profit,and make appropriate innovation investments.(2)Under the outsourcing mode,the government subsidy of remanufacturing costs will bring higher profits to OEM,dealers and 3PR than the subsidy of remanufacturing consumption.Therefore,3PR should strive to improve their technical capacity of recycling and remanufacturing,improve the quality of remanufactured products,and attract the government to provide more subsidies for remanufacturing costs.From the perspective of environmental protection,the government’s provision of consumer subsidies for reproductions will reduce environmental pollution.Therefore,the government should provide a high amount of consumer subsidies for reproductions on the premise of fully considering its own subsidy budget.(3)Under the licensing mode,compared with subsidizing the consumption of remanufactured products,the government’s provision of remanufacturing cost subsidies will bring higher profits to OEM,bring lower negative impact on dealer profits.For 3PR,high consumption subsidies for remanufactured products bring higher profits to themselves.From the perspective of environmental protection,government subsidies for the consumption of reprocesses bring less environmental pollution than subsidies for the cost of remanufacturing.Therefore,the government should provide more subsidies for the consumption of reprocesses.(4)From the perspective of mode selection,carrying out technological innovation under authorization mode is better for OEM and 3PR.It is better for distributors to carry out technological innovation in the outsourcing mode.If the utilization rate of waste products is low,conducting technological innovation under authorization mode is more environmentally friendly.When the recycling rate and utilization rate are both high,if the level of technological innovation is high,the environmental impact of choosing the authorization mode is smaller.If the level of technological innovation is moderate,the environmental impact of choosing the outsourcing mode is smaller.When the recycling rate is low and the utilization rate is high,if the level of technological innovation is moderate,the environmental impact of choosing the authorization mode is smaller.If the level of technological innovation is small,the environmental impact of choosing the outsourcing mode is smaller.The government subsidizes remanufacturing costs in an authorized mode,which is better for OEM.The government subsidizes remanufacturing costs in the outsourcing model,which is better for distributors.When the recycling rate and utilization rate are both high,the government’s subsidy for reproduction consumption under the authorization mode is better for 3PR;When the recovery rate or utilization rate is low,it is better for 3PR for the government to subsidize remanufacturing costs under authorization mode.The government has the lowest impact on the environment by subsidizing the consumption of reproducts under the outsourcing model.