Volume 16 No 5 (2018)
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The Voluntary Supply of R&D Investment for Generic Technology Based on Managers’ Cognition of Brain
Chengliang Wang, Shouwei Li
Abstract
Based on the enterprise managers’ cognition of brain, the network game model of R&D investment for generic
technology is proposed firstly, in which enterprise utility is consisted of ego utility and network utility. The ego
utility comes from the impact of the generic and private technology on enterprise itself; The network utility of
enterprise comes from the spilled utility of its adjacent enterprises along the enterprise social network which is
determined by the altruism of the managers’ brain cognition. Then, the best response function is constructed based
on managers' altruistic cognition of brain by individual decision-makers, and the Nash equilibrium is also given;
Some discussions are presented including the Pareto equilibrium for social decision-making, the impact of
managers’ brain cognition though social network on generic technology R&D investment. Finally, some simulations
have been done for two types of networks and two different brain cognition weights on network game respectively.
It is found that, regardless of the existence or absence of enterprise social networks, the voluntary supply of generic
technology R&D investment is not enough due to the lack of altruistic brain cognition of managers, but the social
network has a positive impact on voluntary supply. It is also found that the modular structure of "small world" in
the network and the network shortcut can induce managers raising awareness of altruism and the voluntary
contribution to the generic technology R&D investment. The conclusions have proposed a feasible path to
increasing generic technology investment though raising mangers’ brain cognition.
Keywords
Generic Technology, Altruism, Brain Cognition, Network Game, Voluntary Supply
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