The Government Subsidy Strategy Choice for Firm’s R&D : Input Subsidy or Product Subsidy?
Joint Authors
Source
Economics Research International
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-5, 5 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-04-14
Country of Publication
Egypt
No. of Pages
5
Main Subjects
Abstract EN
To encourage enterprises to conduct technology innovation, the government needs to formulate appropriate subsidies policy.
This paper compares two R&D subsidy policies in a supplier-manufacturer supply chain, in which the manufacturer conducts R&D activity for quality improvement.
By means of game theory, we investigate the optimal decisions of the players under the two R&D subsidy policies, that is, input subsidy policy and product subsidy policy.
Finally, we compare the profits and welfare to explore the better R&D subsidy policy and provide decision support for government to formulate subsidy policy.
The results show that under input subsidy policy the optimal production output, quality improvement, profits, government subsidies, and social welfare are all lower than those of product subsidy policy.
Therefore, the government should use product subsidy strategy to encourage enterprise R&D activities.
American Psychological Association (APA)
Liu, Zhiying& Li, Qinqin. 2014. The Government Subsidy Strategy Choice for Firm’s R&D : Input Subsidy or Product Subsidy?. Economics Research International،Vol. 2014, no. 2014, pp.1-5.
https://search.emarefa.net/detail/BIM-486729
Modern Language Association (MLA)
Liu, Zhiying& Li, Qinqin. The Government Subsidy Strategy Choice for Firm’s R&D : Input Subsidy or Product Subsidy?. Economics Research International No. 2014 (2014), pp.1-5.
https://search.emarefa.net/detail/BIM-486729
American Medical Association (AMA)
Liu, Zhiying& Li, Qinqin. The Government Subsidy Strategy Choice for Firm’s R&D : Input Subsidy or Product Subsidy?. Economics Research International. 2014. Vol. 2014, no. 2014, pp.1-5.
https://search.emarefa.net/detail/BIM-486729
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-486729