Abstract:

In this paper， the AJ R&D competition model and asymmetric R&D model are used to propose a 2-stage non-cooperative game model about the impact of external knowledge on process innovation in oligopolistic competition market composed of two heterogeneous manufacturers based on knowledge-based view and open innovation theory. The subgame Nash equilibrium solution is solved by inverse regression method， then the equilibrium solution theoretically is analyzed， and numerical simulation is performed. Our findings is that the manufacturer has a larger market share with cost advantage of process innovation for heterogeneous manufacturers， and the equilibrium amount of external knowledge assimilated by the manufacturer will change with the initial cost difference coefficient. Overall， enterprise heterogeneity has caused imbalance in process innovation competition. In the process of process innovation， external knowledge assimilated by the manufacturers has a positive effect on its equilibrium output， and there is a threshold for its impact on the equilibrium profit which increases first and then decreases. Due to spillover effects， external knowledge assimilated by the manufacturer also has a positive effect on the equilibrium output and profits for the opposite manufacturer， but the equilibrium output and profits of the opposite manufacturer depend on the competitive relationship between two manufacturers. Some managerial implications are put forward to promote the use of external knowledge and the effectiveness of process innovation further is enhanced.

Key words: external knowledge, process innovation, enterprise heterogeneity, game theory