Simulating Environmental Innovation Behavior of Private Enterprise with Innovation Subsidies

Abstract

By reducing innovation costs, innovation subsidies can help private enterprises convert their production modes to green production. Based on method of computational experiment in social science, we construct a dynamic model for environmental innovation behaviors of private enterprises to simulate their evolution process in different market mechanisms, product competitions, and innovation subsidies and explore the impact of different subsidy modes on environmental technological innovation behaviors. The experimental results show that, under actions of multiagents, the combination of market subsidy and technology transformation subsidy can achieve the highest utilization efficiency of subsidy funds. However, when level of innovation technology is low, the innovation process should be subsidized at the same time to improve the competitiveness of innovative products. Besides, according to the level of innovation technology, flexible innovation subsidy combinations can be adopted to optimize subsidy in the different stages. The experimental results are of great significance for increasing efficiency of innovation subsidy funds and promoting green sustainable development of private enterprises.