Gap between Innovation, Imitation and Knowledge

This thesis regards the innovation process of two manufacturers as the physical model of the process of two objects, applying the “Fixed Point” solution method and bi-phase two intertemporal utility analysis method. Studies have shown that the entity of innovation “competes with each other”, innovation value “comes and goes,” and the knowledge gap is with a oscillatory enlargement trend, the innovation entity with first-move advantage and advanced advantage restore the behavior logic of “the stronger become much stronger” to create and display “degradation effect”; the balance and tradeoffs between innovation cost and innovation value always exist while the size of innovation value depends on the appraisal from various innovation objects on the innovation degradation effect.