A game analysis on industrial cluster innovation process

Industrial cluster and industry chain this two network organization mutual misunderstandings, interact to a more advanced functions using ldquonetworkrdquo as a coupling interface. Industrial cluster network structure shows the integration of supply chain, value chain, knowledge chain and a deeper level of input-output network, labour network, technical cooperation network. This determines that the essence of industrial cluster innovation is the knowledge flowing and proliferation in the geographic proximity and collaboration enterprises. This process realizes through the vertical and horizontal knowledge integration of supply chain. This paper also uses game theory to choose the industrial cluster innovation strategies. In the vertical knowledge integration of industrial cluster innovation, (independent innovation, joint innovation) is stable equilibrium strategy. In the horizontal knowledge integration of industrial cluster innovation, joint innovation is the optimal strategy, however, due to the lack of the driving force of innovation, it is difficult to form a stable equilibrium.