A Game Analysis Study On The Cooperative Innovation Of Small And Medium Enterprise In Shanxi Province

The small and medium-sized enterprises develop quickly since 1980 in China, and play important parts in the domestic economy. According to the experiences learned from the other countries, the increase of economy relies on not only the large enterprises, but also the huge number of agile small and medium-sized enterprises. The small and medium-sized enterprises have irreplaceable effect in improving the domestic economy, relaxing the pressure of employment, promoting the market development and society stability.Shanxi province, which is known as "the hometown of coal", is an important energy base and traditional industry area. In the new era when the domestic economy changes from resource-relied style to innovation-driven style, Shanxi province reformed the structure of economy, and highlighted the position of technology innovation and the development of small and medium-sized enterprises. The small and medium-sized enterprises in Shanxi province play important roles in increasing the economy, promoting the employment, accelerating the innovation and developing industry.However, small and medium-sized enterprises are limited in many perspectives, such as the innovation mechanism has not been set up; limited incentives of technology innovation; the size is too small and the funding on technology innovation is limited; the staffs have low talent on technology innovation, and so on. Caused by these problems, the traditional technology innovation pattern cannot satisfy the requirement in nowadays. The small and medium-sized enterprise need to increase the innovation capability via the cooperative innovation pattern. By cooperative innovation, the small and medium-sized enterprises can sharply increase its product efficiency, and significantly increase the competency. Therefore, the cooperative innovation is the source of the growth of small and medium-sized enterprises, and the study on the cooperative innovation topics of small and medium-sized enterprises in Shanxi province is strategically and practically significant for driving the Shanxi economy from resource-relied style to innovation-driven style.This paper studies the cooperative innovation behavior of the small and medium-sized enterprises in Shanxi province in two aspectives, i.e., a theoretical perspective, and an empirical perspective. In the theoretical perspective, this paper adopts game theory model, innovation theory, transaction cost theory, resource limitation theory, industry organization theory, etc., summarizes the characteristics of small and medium-sized enterprises in Shanxi, analyzes the necessity of cooperative innovation, and then build several game models. Based on these models, this paper analyzes the effect of new market size on constructing a cooperative innovation union, discusses how government can facilitate the cooperative innovation behavior of smal and medium-sized 1 enterprises using taxes and allowances, studies how the size and learning capability of small and medium-sized enterprises to affect the game behavior with in the cooperative innovation union, and calculates the optimal contract proportion of cooperative innovation. Using model analyses and simulation, this paper works out several conclusions.In the empirical perspective, we adopt the Motivation-Opportunity-Ability framework to select the factors which may influence the cooperative innovation behavior, and build our structure equation model. We collect data from the small enterprises in Shanxi Taiyuan High-tech District to verify our model. Our empirical findings also supported the conclusions in the game theory analysis.The contents of this paper are as follows:Chapter 1 introduces the state of the art of research on global cooperative innovation studies; Chapter 2 describes related theories and defines small enterprises; Chapter 3 summarizes the characteristics of Shanxi small and medium-sized enterprises, analyzes the necessity of cooperative innovation for Shanxi small and medium-sized enterprises, and discusses the pattern of cooperative innovation for Shanxi small and medium-sized enterprises; Chapter 4 constructs a game model on the cooperative innovation of Shanxi small and medium-sized enterprises, analyzes the effects of new market size, government instruments, enterprise size, learning capability and contract distribution proportion on the cooperative innovation, and then propose some suggestions for government to facilitate the cooperative innovation; Chapter 5 present a MOA framework, and an empirical study based on data collected from small and medium-sized enterprises in Shanxi Taiyuan High-Tech District; Chapter 6 summarizes the findings of this study, discusses the limitations and future studies.This paper is unique in the following perspectives:(1) The existing studies have separately studied the effect of market, technique and government, but none have integrated these factors in one model. This paper studies the effect of these factors in the same model, thus can work out more comprehensive conclusions, and also develops the cooperative innovation theory. (2) Traditional industrial organization studies treat the input and output of innovation as bi-value variables. This study uses continuous variable to model the input and output of innovation, thus can precisely reflect the reality. (3) This study treats small and medium-sized enterprises as entities which is rational and seeking the optimal profits, and studies the effect of two market variable:taxes and allowances. Based on the findings, this study proposes some suggestions on facilitating the cooperative innovation and improving the social welfare. These suggestions may help the government facilitate the cooperative innovation via taxes and allowances. (4) This paper also studies the cooperative innovation behavior of the small and medium-sized enterprises in Shanxi Province using structure equation model.