Innovation Incentives.pdf

It constructs an evolutionary game model between local governments and enterprises and uses Matlab simulation to analyze the influence of evolutionary equilibrium strategies and parameter variable adjustments on evolutionary strategies and ESS under different scenarios. The results show that the system has three evolutionary stabilization strategies, and the path evolution depends on the changes in the game payment matrix and parameters. The incremental income is the determining factor for enterprises to choose innovation or not. Reducing innovation costs, improving consumer preferences, and patent transaction benefits can guide enterprises in choosing innovation strategies. At the same time, punishment and government subsidies determine the strategic adjustment of local governments, and increasing punishments and reducing the amount of subsidies can make local governments converge on incentive strategies. Based on the analysis and discussion of the model results, this paper proposes four management implications for adjusting the intensity of subsidies, increasing the penalty for breach of contract, increasing innovation publicity, and improving intellectual property protection.