The Research on Debt Financing Strategy and Competition Strategy under Technology Innovation Alliance

The article builds a three-stage game model to analyze how the enterprises´ financing strategy affects their technology innovation activity with spillover effect and quantity decision when they form technology innovation alliance. We show that the enterprise´s innovation activity is negatively affected by the technology innovation spillover and positively affected by its debt financing strategy; the equilibrium saving cost and the equilibrium profit under being debt financing both are lower than them under not being debt financing. However, the equilibrium quantity is dependent on spillover effect.