RESEARCH ON THE FORMATION AND EVOLUTION MECHANISM OF CHINA'S DEFENSE INDUSTRIAL CLUSTERS.

The evolution of China's defense industrial cluster is essentially a game of military enterprises and civil enterprises. In order to analyze the behavior of military enterprises and civil enterprises in the evolution process of defense industrial cluster, this paper construct an evolutionary model for analyzing the evolution mechanism of China's defense industry cluster based on evolutionary game theory. The results show that, in the development of China's defense industrial cluster, there are two long-run equilibriums: cooperation and non-cooperation. There are four factors have significant influence on the long-term equilibriums: profit of cooperation, distribution of cooperation profit, amount of investment and transaction cost. [ABSTRACT FROM AUTHOR]