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The Impact of R&D Subsidy and IPP on Global Supply Chain Networks System—A Technology Spillover Perspective
Journal article   Open access   Peer reviewed

The Impact of R&D Subsidy and IPP on Global Supply Chain Networks System—A Technology Spillover Perspective

Qiuyun Zhu, Xiaoyang Zhou, Die Li, Aijun Liu and Benjamin Lev
Systems (Basel), v 11(9), p460
04 Sep 2023
DOI: https://doi.org/10.3390/systems11090460
Featured in Collection :   UN Sustainable Development Goals @ Drexel
url
https://doi.org/10.3390/systems11090460View
Published, Version of Record (VoR)CC BY V4.0,  Open

Abstract

In the current globalized business environment, multinational competition has become the norm for companies. This paper considers technology spillovers among manufacturers and develops a global supply chain network equilibrium model. Firstly, the optimal decision-making behaviors of manufacturers, retailers, and demand markets are characterized separately. Secondly, based on the variational inequality theory, the optimal decision-making behaviors of global supply chain members are transformed. Finally, the model is solved and analyzed using the Euler algorithm. The primary objective is to explore the impact of research and development (R&D) subsidies and intellectual property protection (IPP) strategies on manufacturers’ research and development technological levels. Furthermore, the study delves into their effects on the production and transactions of the global supply chain network and social welfare. The following conclusions are drawn: (1) Technology spillovers have a positive effect on the technological level achieved by manufacturers through research and development investment and social welfare. However, intense technological competition may harm manufacturers’ profits. (2) Under the symmetric subsidy policy, higher subsidies may lead to a decrease in social welfare. (3) Under symmetric intellectual property protection policies, increasing the intensity of intellectual property protection benefits manufacturers but is detrimental to retailers and social welfare. However, under an asymmetric intellectual property protection strategy, implementing high-intensity intellectual property protection by high-technology countries is advantageous for retailers and social welfare. This conclusion has contributed to the technical research and development and production operation decision making of global supply chain members, as well as government policy formulation, and has also provided a new perspective for theoretical research in the field of global supply networks.

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11 Record Views
2 citations in Web of Science
2 citations in Scopus

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UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#12 Responsible Consumption & Production

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Social Sciences, Interdisciplinary
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