Research On The Enterprise Game Considering Innovation Investments

With the appearing of the economic globalization,the economic has been developing rapidly.Nowadays country's innovation ability is one of the important factors which will determine its economic development.The enterprise,as the main body of country's innovation ability,its innovation capability has become an important manifestation of its core competitiveness.Now,the governments all over the world are aware of the importance of implementing the strategy of innovation and development and vigorously support innovation activities.So it is of great practical significance to analyze how enterprises should carry out innovation activities and what kind of policies the government should formulate.In this paper we use the theory of game and chaos,and the main contents are as follow.1.We put some enterprises that rely on innovation(such as the Internet,electronic product manufacturing)as the background,we consider the impact of the continuous innovation input to their profits.And a dynamic competition model with price-innovation dual decision variables is established.And we assume that there is a lowest innovation input which will improve the competitiveness,and we analyze the equilibrium points and their stability under different innovation input of the model.We find that both of the exaggerated adjusting speed of price and investment input will cause the model into bifurcations or chaos.It also shows that one enterprise can improve its competitiveness by innovation.2.We propose two different forms of government subsidies for innovation input and innovation output respectively,and we establish a dynamic game model between two enterprises with bounded rationality.In this process,we analyze the complexity of the model and discuss the effects of two different forms of government subsidies on stimulating the innovation activities.Besides,we analyze how the innovation decisions' adjusting speed,the degree of government subsidies and the beneficial coefficient of innovation influence the equilibrium,entropy and stability of the system.The simulation results show that both of the innovation subsidy policies have positive effects on firms' innovation activities.Besides,improving the level of innovation can encourage firms to innovate.It also shows that an exaggerated adjusting speed of innovation outputs may cause complicated dynamic phenomena such as bifurcation and chaos,which means the entropy of the system is increasing.The degree of the government innovation subsidies is also shown to impact the stability and entropy of the system.