An evolutionary game-theoretic approach to analysis the green innovation chain dynamics under government policies

Abstract

Continuous improvement of the green innovation chain is essential for promoting sustainable entrepreneurship and addressing environmental issues. In this paper, we developed a tripartite evolutionary game model involving tech firms, startups, and accelerators. Our goal is to examine the impact of both static and dynamic government interventions on the evolution of the green innovation chain. After determining the evolutionary stable strategies, we examine government interventions through a system dynamics simulation using three different scenarios: (1) Government support downstream of the innovation chain, (2) government support upstream of the innovation chain, and (3) government support throughout the chain. In the first scenario, it is observed that although it promotes green technology innovation (GTI), the necessary support for startups and accelerators to scale up green innovations is lacking. Consequently, the overall level of GTI is limited. Conversely, in the second scenario, there is a lack of incentives for tech firms to invest in GTI, resulting in a stagnation in the innovation chain. Nevertheless, with government support extended throughout the chain, a synergistic effect emerges between all players, leading to a higher level of collaboration and resulting in a more efficient and effective green innovation chain.