Research Into Industrial Innovation Dynamic System: An Evolutionary Game Theoretic Model

This dissertation is based on Innovation, Evolutionary Game Theory, Industrial Economics, and Dynamical System theories. We come up with a mathematical model for Industrial Innovation Dynamical System on Replicator Dynamics. We studied the evolutionary equilibriums of this system and the effect of Innovation Policies in PRC on the system. The research outspreads in the following ways:1. Industrial Innovation Dynamical System is equivalent to biology population evolving system to some extent. This is the logical model of this essay.2. Mathematical model for Industrial Innovation Dynamical System and analysis of its evolutionary equilibriums. This model is based on Replicator Dynamics with fixed parameters. Evolutionary equilibriums of the system are dependent on the income of the innovation strategy, the cost of the innovation strategy and the income of the old strategy. So is the success of the innovation strategy in the system. This part of research is the base for the following.3. Research into the system with mutative parameters. It points out that with innovation cost decreasing according to time, innovation strategy develops in a Life Cycle way in the system. When innovation income decreases while the number of companies increases, the fate of the innovation strategy depends on whether the first company who adopts it gets Excess Surplus Value.4. Research into the Innovation Policies effect on Industrial Innovation Dynamical System in PRC. Supply and demand policies have a direct effluence while environmental policies act on the environment. The above three are different and the last is very complicated with various effluences.The dissertation points out although innovation strategy has high utility than the primary one, it doesn't always succeed in an industry based on Replicator Dynamics, which includes competitions and imitation between companies. Thus appropriate guide of the government is advisable.