An Evolutionary Game Simulation of a Composite Subsidy Policy to Promote Military-Civilian Integration: A National System of Innovation With Chinese Characteristics

Collaborative innovation involving military and civilian actors is a key component of National Systems of Innovation. It is an approach that is explicitly promoted in China under the name of Military-Civilian Integration. To more effectively promote Military-Civilian Integration, it is necessary to...

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Main Authors: Ning Qi, Lu Shiping, Hao Jing
Format: Article
Language:English
Published: IEEE 2022-01-01
Series:IEEE Access
Subjects:
Online Access:https://ieeexplore.ieee.org/document/9863775/
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author Ning Qi
Lu Shiping
Hao Jing
author_facet Ning Qi
Lu Shiping
Hao Jing
author_sort Ning Qi
collection DOAJ
description Collaborative innovation involving military and civilian actors is a key component of National Systems of Innovation. It is an approach that is explicitly promoted in China under the name of Military-Civilian Integration. To more effectively promote Military-Civilian Integration, it is necessary to study the impact of government subsidies on enterprise-level behavior. The research reported in this paper analyzes a composite subsidy policy’s influence on the cooperative innovation behavior of military and civilian enterprises with game theory. First, during the early stage of development, an R&D subsidy can stimulate firms to invest in technological innovation, but it harms the long-term and stable development of civil-military cooperation by encouraging free-riding behaviors. Second, as military-civilian integration continues and deepens, the input-output rate of the R&D will increase, and this makes the role of tax subsidies increasingly relevant. Third, the composite application of scale and tax subsidies will be most effective in reinforcing innovation during the Industrialization Stage. Fourth, further simulations show an apparent heterogeneity in the responses of the military enterprise and the civilian enterprise to the three kinds of subsidy that we have considered. Civilian enterprises are more sensitive to subsidies, while military enterprises are more sensitive to technology spillovers. Therefore, the government should build a military-civilian integration platform to share resources in ways that maintain security confidence and improve the R&D input-output rate. The government should strengthen confidentiality management, training, and risk prevention and control measures for military-civilian integration projects, to reduce the risk of technology spillover.
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spelling doaj.art-38ffd02c4aec4e959960bfcf2c5e7a3d2022-12-22T04:31:07ZengIEEEIEEE Access2169-35362022-01-0110882768829410.1109/ACCESS.2022.32003839863775An Evolutionary Game Simulation of a Composite Subsidy Policy to Promote Military-Civilian Integration: A National System of Innovation With Chinese CharacteristicsNing Qi0https://orcid.org/0000-0001-7425-6111Lu Shiping1https://orcid.org/0000-0001-9114-2968Hao Jing2School of Economics and Management, Shenyang Aerospace University, Shenyang, ChinaSchool of Economics and Management, Shenyang Aerospace University, Shenyang, ChinaSchool of Economics and Management, Shenyang Aerospace University, Shenyang, ChinaCollaborative innovation involving military and civilian actors is a key component of National Systems of Innovation. It is an approach that is explicitly promoted in China under the name of Military-Civilian Integration. To more effectively promote Military-Civilian Integration, it is necessary to study the impact of government subsidies on enterprise-level behavior. The research reported in this paper analyzes a composite subsidy policy’s influence on the cooperative innovation behavior of military and civilian enterprises with game theory. First, during the early stage of development, an R&D subsidy can stimulate firms to invest in technological innovation, but it harms the long-term and stable development of civil-military cooperation by encouraging free-riding behaviors. Second, as military-civilian integration continues and deepens, the input-output rate of the R&D will increase, and this makes the role of tax subsidies increasingly relevant. Third, the composite application of scale and tax subsidies will be most effective in reinforcing innovation during the Industrialization Stage. Fourth, further simulations show an apparent heterogeneity in the responses of the military enterprise and the civilian enterprise to the three kinds of subsidy that we have considered. Civilian enterprises are more sensitive to subsidies, while military enterprises are more sensitive to technology spillovers. Therefore, the government should build a military-civilian integration platform to share resources in ways that maintain security confidence and improve the R&D input-output rate. The government should strengthen confidentiality management, training, and risk prevention and control measures for military-civilian integration projects, to reduce the risk of technology spillover.https://ieeexplore.ieee.org/document/9863775/Collaborative innovationevolutionary gamemilitary-civilian integrationsubsidy policy
spellingShingle Ning Qi
Lu Shiping
Hao Jing
An Evolutionary Game Simulation of a Composite Subsidy Policy to Promote Military-Civilian Integration: A National System of Innovation With Chinese Characteristics
IEEE Access
Collaborative innovation
evolutionary game
military-civilian integration
subsidy policy
title An Evolutionary Game Simulation of a Composite Subsidy Policy to Promote Military-Civilian Integration: A National System of Innovation With Chinese Characteristics
title_full An Evolutionary Game Simulation of a Composite Subsidy Policy to Promote Military-Civilian Integration: A National System of Innovation With Chinese Characteristics
title_fullStr An Evolutionary Game Simulation of a Composite Subsidy Policy to Promote Military-Civilian Integration: A National System of Innovation With Chinese Characteristics
title_full_unstemmed An Evolutionary Game Simulation of a Composite Subsidy Policy to Promote Military-Civilian Integration: A National System of Innovation With Chinese Characteristics
title_short An Evolutionary Game Simulation of a Composite Subsidy Policy to Promote Military-Civilian Integration: A National System of Innovation With Chinese Characteristics
title_sort evolutionary game simulation of a composite subsidy policy to promote military civilian integration a national system of innovation with chinese characteristics
topic Collaborative innovation
evolutionary game
military-civilian integration
subsidy policy
url https://ieeexplore.ieee.org/document/9863775/
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