<p>This paper analyzes the influence of the government’s guiding and incentive role on the strategic choices of each party in the process of technological innovation diffusion by constructing an evolutionary game model of technological innovation diffusion that includes enterprises, consumers and the government. Through Matlab simulation, it explores how government subsidies, penalties, publicity and credibility loss affect the decision-making behaviors of firms, consumers and the government. The study suggests that local governments should weigh their efforts in implementing relevant policies to avoid over-intervention that leads to adverse economic consequences, and at the same time ensure the smooth diffusion of innovative technologies.</p>

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The Role of Government Incentives in Technological Innovation Diffusion: an Evolutionary Game Approach

  • Xiaodi Xu,
  • Zhiwen Zhang,
  • Yi Li

摘要

This paper analyzes the influence of the government’s guiding and incentive role on the strategic choices of each party in the process of technological innovation diffusion by constructing an evolutionary game model of technological innovation diffusion that includes enterprises, consumers and the government. Through Matlab simulation, it explores how government subsidies, penalties, publicity and credibility loss affect the decision-making behaviors of firms, consumers and the government. The study suggests that local governments should weigh their efforts in implementing relevant policies to avoid over-intervention that leads to adverse economic consequences, and at the same time ensure the smooth diffusion of innovative technologies.