Game Analyses of Strategic Choices on Technology Innovation for Asymmetric Domestic and Foreign Enterprises*

摘要

With economic globalization, domestic enterprises have to compete with more and more foreign enterprises. It’s important for domestic enterprises to make technology innovation. In this paper ,w study choices of technology innovation strategy of oligopoly domestic and foreign enterprises under investment cost and risk’s asymmetry based on game theory, the Game models are constructed and strategic choices of each player are analyzed while foreign enterprises pursue market share for the goal of scale expansion. We get the conclusions: ① when foreign enterprises make no technology innovation, China enterprises must make technology innovation if they do not want to be driven out of the market.②when foreign enterprises make technology innovation, domestic enterprises’ market share is bigger with technology innovation, but the market share is determined by the success probability of technology innovation. ③ when foreign enterprises have a high risk of technology innovation, domestic enterprises may adopt technology innovation.