A Study of Product Innovation and Process Innovation on Asymmetric Vertical Integration

• Main Authors: Hui-Hua Wang, 王慧華
• Other Authors: Teng-Lung Hsieh
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/31739587338726092952

碩士 === 東海大學 === 國際貿易學系 === 98 === This study tries to use economical model to discuss the relationship between a vertically integrated firm, who adopts process innovation, and a non-vertically integrated firm, who carries out product innovation, under duopoly markets. Also, this research refers to the literaturs of Buehler and Schmutzler (2008)、Milliou (2004) , and Yin and Zuscovitch (1998). The first one talked about intimidation effect, and the second one investigated spillover effect. Both of them all made a study of R&D. The final one provided the concept of product innovation. However, this study extends above literatures because in the research of Buehler & Schmutzler(2008), they just use process innovation on asymmetric vertically integrated firms to discuss intimidation effect. But, this research tries to let one vertically integrated firm use process innovation and let the other non-vertically integrated firm use product innovation to study intimidation effect. Finally, the findings of this paper are： (1) When vertically integrated firm increases the investment in process innovation, non-vertically integrated firm will increases the investment in product innovation, too. (2) The quantity of old products is made by vertically integrated firm will greater than non-vertically integrated firm does. (3) When the market demanding for new products is rising, for vertically integrated firm, its profit will raise, and it will increase the investment in process innovation. However, for non-vertically integrated firm, its profit will be uncertain-it maybe increase or decrease, but it still will raise the investment in product innovation. (4) When the market demanding for old products is diminishing, for vertically integrated firm, both its profit and investment in process innovation will decrease. However, for non-vertically integrated firm, its profit will be uncertain-it maybe increase or decrease, but it still will raise the investment in product innovation.