A technological innovation game analysis on marketcompetition of domestic enterprise with foreign enterprise

After entering WTO, omestic enterprises are facing more and more fierce competition with foreign enterprises´ entry, and technological innovation has become the important way for enterprises to build competitive advantages. On the view of the existing technical standard and technological innovation investment, a static game of complete information model is founded for domestic enterprises competing with foreign enterprises on technological innovation. A conclusion is that: if foreign enterprise pursues large market share, domestic enterprise has to make technological innovation as the only choice.