The Evolutionary-Game-Theory-Based Analysis of the Enterprise and Government Innovation Game

Enterprises and governments are the two game main bodies. Their choice of game strategies is a process of dynamic adjustment. This paper, using the evolutionary game theory as a tool, establishes the innovative evolutionary game model to analyze the strategy choice in the process of imitation and replication by game main bodies. The analytic conclusion tells us that the government's improved incentive system is a guarantee for the enterprise to engage in technological innovation. On the other hand, the enthusiasm of the enterprise for technological innovation is the driver for the governments to undertake system innovation. In addition, the evolutionary equilibrium of game is, in system terms, to ensure the reduction of external costs of the enterprise to stimulate it to engage in innovation, while the enterprise would choose to the continue its innovation in order to pursue the innovation income.