Research On Decision-making On Innovation Input In Supply Chain

Innovation is the key driving force for enterprises to obtain and maintain core competitiveness,because the innovation of enterprises is embedded in a specific supply chain,therefore,the innovation input of enterprises in the supply chain can not only enhance the value of the enterprise itself,but also may improve the level of innovation of the entire supply chain.However,the innovation input of enterprises in the supply chain faces the dilemma that they have to cooperate in value creation and compete in value capture.By constructing a biform-game model with cooperation in R&D input and competition in value capture,the innovation input decisions of firms in the supply chain and their impact on the innovation performance of the whole supply chain are studied from the perspective of value capture,and the problem of optimizing innovation input decisions through subsidies and integration strategies.The results of the study show that.First,there are spillover effects of innovation investment in the supply chain.Although each company can benefit from the spillover effect of innovation investment from other enterprises,it may not be enough to compensate for the spillover effect of its own R&D investment,resulting in insufficient innovation investment for all enterprises in the supply chain.Second,the level of innovation investment of enterprises is related to their position in the supply chain.Manufacturers at the center of the supply chain are able to capture more value than companies at the edge.Third,enterprises in central locations are willing to subsidize the innovation investment of enterprises in other marginal locations,and can alleviate the problem of insufficient innovation investment,but the innovation investment of enterprises in the supply chain may still not reach the overall optimal level.Finally,the innovation investment of enterprises that adopt the integration strategy is always effective,and both partial and fully integrated strategies can solve the problem of insufficient innovation investment of enterprises participating in integration.However,under the partial integration strategy and the full integration strategy,there is a difference in the value capture level of the enterprises participating in the integration,and the value capture level of the enterprise under the fully integrated strategy is higher than the value capture level under the partial integration strategy.As a result,the strategic choices of firms in the supply chain will eventually tend to be fully integrated.Given that competition among firms has risen to competition among their respective supply chains,the findings of this paper have important theoretical and practical implications for firms in supply chains to implement innovation and thus improve their own value capture capabilities while enhancing the value creation capabilities of the entire supply chain.