The impact of government subsidy of manufacturing firm innovative decision in the background of low-carbon

Abstract

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.