Innovative Mechanism and its Auto-Reinforced System in Chinese Industrial Cluster

In Chinese industrial cluster, the innovation mechanism has a self-reinforced system if there is no external intervene. According to Game analysis on the self-reinforced system of companies´ innovation mechanism industry clusters, the result shows that it is easy for cooperation innovation in the industry cluster to have a phenomena of ´free rider´ if the its cooperation innovation is only in short term, whereas it has a self-reinforced mechanism of cluster innovation in long term. Therefore, as it normally forms self-reinforced mechanism without some external driving force, Chinese government shall provide its preferential policies to grow the innovation and gradually cease the super-treatment.