Stability of Industry-University-Research Institute Alliance Driven by Government Policy Based on Game Theory

Abstract

In order to achieve the goal of “becoming an innovative country in 2020 and becoming a world power in 2050”, the central government of China has introduced ‘Collaborative Innovation’ as a new paradigm of innovation on top of the ‘Indigenous Innovation Strategy’. In this study, a decision-making model is constructed using the evolutionary game theory and methodology to describe the decision-making activity in the course of collaborative innovation involving enterprises, universities/research institutes under certain government policies. Furthermore, the stability of strategy selection is analyzed. Theoretical analysis and numerical simulation show that only when enterprises, universities and research institutes get enough extra return will they evolve to the “ideal state”. The government subsidy can boost the evolution towards the “ideal state”, but the subsidy coefficient must be controlled within a certain range.