Game of government and forestry enterprise in the management innovation

Innovation by forestry enterprise is very important to promote forestry enterprise´s competition ability and economic development of state-owned forest. In this paper, evolutional game theory was used to construct the game model and study the behaviors of government and forestry enterprise regarding the innovation. Moreover, the strategy interaction and equilibrium between government and forestry enterprise were analyzed. This paper emphasizes the effect of impetus cost of government on the innovation behavior of forestry enterprise. The evolutionary equilibrium of game is that government reduces the outside cost from system so as to promote forestry enterprise to perform innovation, and government and forestry enterprise gain the innovative profits by continuously taking innovation.