How manufacturers in co-opetition choose R&D mode with uncertainty of green technology R&D

¹ School of Economics and Management, Jiangsu University of Science and Technology, Zhenjiang 212100, P.R. China
² School of Management, Fudan University, Shanghai 200433, P.R. China
³ College of Management and Economics, Tianjin University, Tianjin 300072, P.R. China

^* Corresponding author: wangkun@just.edu.cn

Received: 16 May 2024
Accepted: 23 April 2025

Abstract

To reduce carbon emissions during automobile transportation, automobile manufacturers cooperate with competitors to conduct green technology research and development (R&D). Cooperation modes include investment sharing (IS) and innovation sharing (IN) mode, aiming to share risks. Using game theory, this study analyzes the effects of three R&D modes on optimal price, quality, profit, and total greenness. The main focus is on the impact of potential market size, quality demand coefficient, and technology uncertainty on the strategic choices of manufacturers and competitors. Under independent R&D (ID) mode, the increase in the potential market size of competitors does not necessarily weaken the manufacturer’s competitiveness and profits. Under IS mode, when the positive impact of quality ondemand increases, the competitor is not motivated to increase the share of investment cost allocation. Under IN mode, when the potential market size of the Manufacturer increases, there is not necessarily an inhibitory effect on the competitor’s product quality and price. In the ID and IN modes, the increase in technological uncertainty can lead competitors to adopt mitigation strategies to mitigate risks. In the IS mode, competitors consider their competitive advantages and adopt strategies to increase and reduce the allocation ratio to avoid price wars and transfer risks, to mitigate the impact of technological uncertainty. As the potential market size of the Manufacturer decreases, the dominance of ID mode (IN mode) is shifting to that of IS mode in terms of total greenness and profit.