Research on Core technology R&D Investment and Outcome Transformation Strategy of Single Manufac-turer Based on Multi-factor Influences

Nanjie Li; Enquan Meng; Han Song; Ying Dai

doi:10.54097/tfapws17

Authors

Nanjie Li
Enquan Meng
Han Song
Ying Dai

DOI:

https://doi.org/10.54097/tfapws17

Keywords:

R&D Investment, Outcome Transformation, Supply Chain Management, Game The-ory

Abstract

This study examines the impact of uncertainty in core technology R&D innovation on a second-tier supply chain comprising two rival final product manufacturers and a key component supplier. It investigates a single manufacturer's decision-making regarding R&D investment and outcome transformation. Four scenarios are identified based on different investment and transformation strategies: no investment, individual invest-ment with self-use of outcomes, individual investment with outcome transfer, and cooperative investment with outcome sharing. The study analyzes how these strate-gies affect the supply chain and considers the influence of R&D success rate and competition intensity. Findings suggest that a manufacturer's strategic choices are influenced by competition intensity, R&D success rate, and investment costs. Spe-cifically, high R&D investment costs become crucial under significant R&D uncertainty, while under low uncertainty, optimistic R&D success expectations reduce the im-portance of investment costs. Manufacturers can increase overall supply chain profit when investment costs are low and success rates are high. Moreover, as competition intensifies, self-use of R&D outcomes by the manufacturer becomes more advanta-geous for the supply chain. This research contributes theoretical insights into single manufacturer R&D investment decisions and offers valuable insights for further ex-ploration in core technology R&D investment and outcome transformation strategies.

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