Study on the selection of firm technological innovation model based on game analysis

Recently, firms do not only devote resource to the innovation throughout firms, but also focus on in-house. The kind of innovation model “double track”-both on independent innovation and cooperative innovation has become the new trend for firm-innovation. Based on transaction cost theory and resource dependence theory, the article constructs a three stage innovation mode selection framework focus on two core factors-innovation cost and innovation resource theoretically. It also presents an equilibrium game model to show that innovation cost and innovation resource are the most important affect factors for innovation model selection and how they influence. Finally, some conclusions are drawn and a discussion of future directions is given.