Abstract：The firms in developing countries and developed countries have comparative advantage in production cost and R&D technology respectively.Then 3 game modes of different countries' R&D competition and cooperation are constructed under the hypothesis that the developing country doesn’t offer R&D subsidy,and the developing country offers R&D subsidy.Independent R&D levels,productions and profits of the firms in the developing and developed countries are compared between these models.It’s found that if the developing country offers R&D subsidy to its firms,independent R&D levels of the firms in developing and developed countries and productions of the firm in the developed country will be increased,which will be increased more under R&D cooperation.However,production and profit of the firms in the developing country will only be increased under R&D cooperation,and profit of the firms in the developed country will only be increased under R&D competition.
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