Abstract

Since the United States, the European Union, China, and other countries put forward the development strategy of Internet of Things (IoT), it has been growing rapidly, leading to industrial restructuring and the sustainable development of various industries. Not only can collaborative innovation of the IoT industry accelerate R&D efficiency and product substitution frequency of IoT infrastructure, but also it can promote the construction of smart cities, the application of Big Data and Cloud Computing, and the development of 5G. In China, government is a leader and initiator of IoT infrastructure deployment. Therefore, in this paper, we construct an evolutionary game model of the IoT industry under government leadership represented by government, telecom equipment manufacturers, and telecom operators. Then, we analyze the asymptotic stability, equilibrium stability, and evolutionary stability strategy of the model. Finally, we carry out numerical simulation to investigate the effect of eight factors and four mechanisms on evolutionary behaviors of the three parties. The results show each factor has a different influence on them. Evolutionary game model offers ideas for government and industry subjects before the collaborative innovation of IoT infrastructure deployment in practice.

Highlights

  • The Internet of Things (IoT) is a global network infrastructure that connects all elements and objects through perception, identification, communication, interaction, and other ways [1,2]

  • Government subsidy within a reasonable range will promote the three parties to reach the consensus of collaborative innovation

  • In the aspect of government subsidy distribution, that the government deliberately support the growth of weaker innovative party will promote the three parties to reach the consensus of collaborative innovation

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Summary

Introduction

The Internet of Things (IoT) is a global network infrastructure that connects all elements and objects through perception, identification, communication, interaction, and other ways [1,2]. Government mechanism has a leading, regulating, and supporting effect on emerging industries to promote the vigorous development of new technologies. In the era of internet and even IoT, with the deep integration of information and communication technology and other industries, enterprises are increasingly looking for collaborative innovation to reduce market uncertainty and high risks brought by innovation. Jiao et al applied the evolutionary game theory to divide the collaborative innovation network development of the IoT industry in China into three stages: no dominant role, government dominant role, and alliance dominant role [25]. Evolutionary game theory can analyze the evolution process in collaborative innovation of strategic emerging industries [31]. In this paper, we establish an evolutionary game model and discuss the factors, which influence collaborative innovation of the IoT industry under government leadership. The last section draws the conclusions and implications, and presents some suggestions

The Parties in the Evolutionary Game
The Game among the Parties
Assumption and Payoff Matrix
Expected Revenue Function and Replication Dynamic System
Equilibrium Stability and ESS
Asymptotic Stability
Numerical Simulation
Urban Planning
Government Intervention
Distribution
Punishment
Findings
Conclusions and Implications
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