Technology Sharing and Competitiveness in a Stackelberg Model
Junlong Chen, Zihan Wei, Jiali Liu, Xiaosong Zheng
Keywords:
competitiveness, technology sharing, Stackelberg competition, sharing fee, product differentiation
Abstract:
The existing literature has made great achievements in technology sharing (licensing patents)
contracts, which has defects in the selection of oligopoly models, the setting of innovation
subjects, the consideration of product heterogeneity, and production costs. This paper aims to
reveal the competitiveness strategies of leaders and followers for innovation, technology sharing,
and sharing fees in a Stackelberg market. The three-stage sequential game method is used to
achieve the objective. The results are as follows. First, whether an enterprise uses innovation
or shares technology is related to the fixed cost of innovation, the return on innovation, and
product differentiation. It will hinder innovation activities if the fixed cost of innovation is too
high, the return on innovation is too low, or the products are too homogeneous. A relatively low
return on innovation makes it possible for the two enterprises to engage in sharing. However,
with a relatively high return on innovation, only a high level of product differentiation can ensure
technology sharing. Second, the optimal sharing fee is dynamic, showing an upward and then
downward trend as the return on innovation grows. Product differentiation has an uncertain
impact on the cost. Third, either the leader or the follower is likely to be the optimal bearer
of social responsibility depending on the returns on innovation and product differentiation.
This study has theoretical significance for optimizing technology-sharing decisions, improving
competitiveness for enterprises, and formulating effective industrial policy for the government.
And it provides some practical guidance for competition and cooperation between enterprises
with technological innovation behavior.
Fulltext download:
 Technology Sharing and Competitiveness in a Stackelberg Model [PDF file] [Filesize: 1.41 MB]
 10.7441/joc.2021.03.01
Chen, J., Wei, Z., Liu, J., & Zheng, X. (2021). Technology Sharing and Competitiveness in a Stackelberg
Model. Journal of Competitiveness, 13(3), 5–20. https://doi.org/10.7441/joc.2021.03.01
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