Abstract:Different from general studies on competition and/or cooperation relationship of enterprises, the paper classified enterprises’ technological innovation strategies into cooperation, neutrality and competition, built the evolution model of enterprises’ relationship during green technology innovation process, and analyzed the effect of enterprises’ technology innovation capability, government subsidy rate on the stability of relationship system using the MATLAB simulation technique, while knowledge spillover existed. The paper drew the following conclusions: (1) when there is no cooperation between the two enterprises’ groups, no matter how the enterprises’ technology innovation capability change, both parties chose the non-cooperation strategy; when some enterprises have cooperated with others, the enterprises’ technology innovation capability has a significant impact on relation’s choosing, that is, while the innovation capability enhance, the one with strong innovation capability would chose cooperation strategy, and the weak one chose non-cooperation strategy. Sincere cooperation usually occur between the evenly matched enterprises. (2) the effect of government’s green technology innovation subsidies has high uncertainty, even high subsidies may inhibit the cooperation and intensify the competition among enterprises.