Open AccessThe impact of government subsidy of manufacturing firm innovative decision in the background of low-carbon
Author(s) -
Xiaotian Cai,
Yang Yang,
Zhe Li
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/688/5/055057
Subject(s) - subsidy , dilemma , government (linguistics) , industrialisation , business , industrial organization , rationality , promotion (chess) , decision model , economics , market economy , philosophy , linguistics , mathematical economics , epistemology , politics , political science , law
In the low-carbon background, the green manufacturing and a new road to industrialization should be developed in China. Government subsidies can promote the promotion of low-energy products, and thus control the total carbon emissions. Aiming at an innovation-decision dilemma of a kind of self-research and development manufacturing firms, the characteristics of disruptive innovation and sustaining innovation were analyzed in the viewpoint of the firms’ dynamic competitive advantages. A 0-1 nonlinear decision model was built with consumer surplus as the optimization objective. This model can provide guidance for government policy strategy and manufacturing firm innovation decision. A genetic algorithm was developed to solve the 0-1 nonlinear decision model. A case study of an automobile was reported to demonstrate the feasibility and rationality of this approach.