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Dynamic and Stable R&D Strategies for Green Technology Based on Cooperative Differential Games

Author

Listed:
  • Hui Jiang

    (School of Business, Qingdao University, Qingdao 266071, China)

  • Fanjun Yao

    (School of Management, Beijing Institute of Technology, Beijing 100081, China)

  • Hongwei Gao

    (School of Mathematics and Statistics, Institute of Applied Mathematics of Shandong, Qingdao University, Qingdao 266071, China)

Abstract

As the “carbon neutrality” strategy is implemented, green technology R&D, a core competitive strength for sustainable enterprise development, is an essential pathway for China’s transformation and green growth. Green technology, a breakthrough over traditional production technologies, involves lengthy and costly R&D processes with high risks typically beyond the reach of a single enterprise. It requires the heterogeneous functions of enterprises, universities, and research institutions to complement each other’s advantages and establish an “industry–university–research” collaborative innovation alliance for green technologies. This paper constructs differential game models for non-cooperative and cooperative green technology R&D involving a green manufacturer and a research institution. We solve and compare the profits for both parties under these scenarios, apply a time-consistent payment distribution mechanism to allocate cooperative profits, and ensure that neither party deviates from the optimal cooperative trajectory over a prolonged period, achieving Pareto improvement and enhancing social welfare.

Suggested Citation

  • Hui Jiang & Fanjun Yao & Hongwei Gao, 2024. "Dynamic and Stable R&D Strategies for Green Technology Based on Cooperative Differential Games," Mathematics, MDPI, vol. 12(20), pages 1-19, October.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:20:p:3300-:d:1503231
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    References listed on IDEAS

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    1. Yao, Fanjun & Parilina, Elena & Zaccour, Georges & Gao, Hongwei, 2022. "Accounting for consumers’ environmental concern in supply chain contracts," European Journal of Operational Research, Elsevier, vol. 301(3), pages 987-1006.
    2. D. W. K. Yeung & L. A. Petrosyan, 2004. "Subgame Consistent Cooperative Solutions in Stochastic Differential Games," Journal of Optimization Theory and Applications, Springer, vol. 120(3), pages 651-666, March.
    3. Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329, September.
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