A Study Of The Selection Of The Radical Innovation Strategy Based On The Game Theory

As the dramatic change of the world environment, the planarization of the world is accelerating, our country’s development pattern is changing sharply and momentously. Increasing the degree of China’s enterprises to participate in international competition, the construction of the enterprises competitiveness becomes the important guarantee of China’s enterprises to get the competitive edge in the international competition. For this purpose, the radical innovation strategy becomes more and more important for the development of Chinese enterprises. But researches at home and abroad of the strategic choice still focus on the radical technological innovation and traditional strategy. There is little researches on the selection mechanism of the radical innovation strategy. At the same time, the research at home and abroad of the strategic choice which is based on the game theory is not many.Drawing lessons from the domestic and foreign research results; this paper analyzes the connotation of the radical innovation strategy. First, this paper analyzes the differences between the radical technological innovation and the incremental technological innovation, and then distinguishes the connotation of the radical innovation and the incremental innovation. This paper holds this point that the connotation of the radical innovation is bigger than the incremental innovation, which is different from the other scholar’s point, that the two concepts are same. At the same time, this paper gives an outline of the type of competitive strategy. On the basis of these studies, this paper defines a preliminary definition of the connotation of the radical innovation strategy. In the second part of the article, this paper expounds the important effect and influence of game theory in the enterprise competition strategy, and based on these discussions, builds a simple model of game tree, in order to form the selection method of the enterprise’s radical innovation strategy. Namely the enterprise in when can use radical innovation strategy, when should use traditional other strategy. Hope these studies can give some theoretical guidance to the development of enterprise.This article is divided into five parts:the first part illustrates the background, significance, content and method of the research; second part reviews the related research at home and abroad; the third chapter defines a preliminary definition of the connotation of the radical innovation strategy on the basis of studies at home and abroad; the forth chapter mainly focused on the importance of the game theory in the enterprise’s competition strategy and uses the model of game tree to build a model of the selection method of the enterprise’s radical innovation strategy; In the last chapter, this paper makes a simple summary of the content of this article, takes out the innovation and insufficiency of this article. Finally this paper puts forward the outlook for future research.