Journal of Northeastern University(Natural Science) ›› 2022, Vol. 43 ›› Issue (1): 124-132.DOI: 10.12068/j.issn.1005-3026.2022.01.018

• Management Science • Previous Articles     Next Articles

Research on Impacts of Manufacturers’ Innovation Investment Decision-Making Under Different Competition Modes

GUO Xiao-ling1, LI Kai2   

  1. 1. School of Economics, Liaoning University, Shenyang 110136, China; 2. School of Business Administration, Northeastern University, Shenyang 110169, China.
  • Revised:2021-01-27 Accepted:2021-01-27 Published:2022-01-25
  • Contact: GUO Xiao-ling
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Abstract: Based on the game models under different market structures, the impacts of different competition modes on upstream manufacturers’ innovation investment decision-making in horizontal and vertical dimensions were discussed. The results showed that the horizontal market competition intensity has a negative effect on upstream manufacturers’ innovation investment willingness, while the vertical market power has a positive effect on upstream manufacturers’ innovation investment willingness. However, compared with the benchmark situation without competition pressure, both horizontal and vertical competition will reduce manufacturers’ motivation to invest in research and development innovation, and the double competition pressure from the horizontal and vertical dimensions will aggravate this inhibition. Finally, through numerical analysis, the correctness of the obtained results is verified.

Key words: market structure; competition mode; horizontal competition; vertical competition; innovation investment

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