Every country will enact the industrial policy to the strategic industry, in order to coach the national manufacturer. A lot of literature study products under the homogeneity nature situation in duopoly industry, study manufacturers make research and develop (Process R&D), and the behavioral of interaction, or add the influence of the government policy. However, according to Scherer & Ross (1990) describe, American have 3/4 R&D of investment to be spend on products R&D; So as to duopoly to take manufacturer and products have situation of heterogeneity. Hence, the competition of the products R&D and result of government policy, will be the interesting topic and worth studying. The purpose that this paper studies, lie in the government goes on to the manufacturer (1) The products R&D subsidies, (2) Export subsidies and (3) Technological transfer, etc. industrial policy make the manufacturer R&D, products and one country welfare, and the result of study made by Spencer & Brander (1983) articles classical conclusion contrast comparison.