# Analysis on the impact of dynamic innovation investment strategy of green supply chain enabled by blockchain

## TL;DR

This paper explores how blockchain can improve trust in green supply chains and identifies the best strategies for innovation investment.

## Contribution

The study introduces a blockchain-enabled dynamic investment strategy analysis using differential game theory in green supply chains.

## Key findings

- Vertical cooperative alliances yield higher system profits and better innovation outcomes compared to horizontal alliances.
- Blockchain technology enhances innovation investment strategies for green suppliers and platforms.
- Innovation uncertainty significantly affects decision-making and alliance selection in green supply chains.

## Abstract

The emergence of the green supply chain represents a natural evolution from the traditional model. However, this transition has created trust concerns in operational processes. Fortunately, blockchain technology offers a promising solution to address this issue and help businesses overcome related obstacles. As artificial intelligence and blockchain continue to advance, enterprises are increasingly exploring opportunities for green innovation investments, although the optimal timing for successful product innovation can be difficult to predict.

The effects of successful innovation on eco-friendly supply chains are analyzed through various factors such as optimal investment strategy, level of blockchain technology, and overall system profit. Differential game theory is used to determine the most effective approach across three alliance modes: horizontal cooperative, non-cooperative, and vertical cooperative. Additionally, the impact of innovation uncertainty on member strategies and alliance selection is thoroughly examined.

According to the results, predicting the likelihood of innovation realization can influence decision makers to prioritize current profits. Both horizontal and vertical cooperative alliance models can lead to Pareto improvements in total system profit, both before and after innovation success. However, the vertical cooperative alliance model proves to be more effective, especially at higher realization rates. Green suppliers stand to benefit from the vertical cooperative alliance model, as it can enhance their innovative investment strategy, while platform cooperation does not significantly affect their strategy. Platforms, on the other hand, can benefit from the vertical cooperative alliance model, as it can promote their innovative investment strategy and level of blockchain technology.