With the method of dynamics duopoly game theory, the effect of firms’ innovation ability on the choice between product and process innovation is studied. The concept of cost coefficient of product innovation is introduced, and the criterion equation for the innovation type is derived. It is concluded that the more the product innovation ability, the more the possibility for the firms to carry out the product innovation in both the Bertrand and the Cournot competitions. With the decrease of the product innovation ability, for the highquality firms, Cournot competitor tends to select the process innovation earlier than the Bertrand competitor. But for the lowquality firms, the Bertrand competitor would select the process innovation firstly.
曾武. 动态寡头市场博弈条件下企业创新能力的 产品创新及工艺创新选择[J]. J4, 2012, 9(5): 772-.
ZENG Wu. The Effect of Firms’ Innovation Ability on the Choice between Product Innovation and Process Innovation Based on the Dynamics Duopoly Game Theory. J4, 2012, 9(5): 772-.