5ZE-1
Analyzing the Impact of Government’s Policy towards Product Innovation on Firms by Using Evolutionary Game Theory
○LIEN THI QUYNH LE,中平勝子,三上喜貴(長岡技科大)
For every firm, innovations have become a key determinant of their successful development. For the governments, they are concerned with product innovation not only for economic growth but also for social benefits. Governments encourage firms in developing of innovative and safer products by supporting R&D subsidies, tax credits and rely on regulations of product liability to assure that these advances do not pose harm. Firm decision making on product innovation is affected by the risk of tort liability and the high R&D expenditures on product novelty and safety. In this context, we use evolutionary game theory to model and simulate the interaction between governments and firms as two competing interest groups, then analyze the effects of government policy on the incentive of firms towards product innovation.