Abstract:Paper using evolution game theory, in limited rational of assumed premise Xia, with technology innovation interests subject non-symmetric sex evolution game analysis of copy dynamic model, on Between Government and Small and Medium-sized Enterprises of technology innovation behavior for game analysis, focus discussion interests related subject between of behavior and the mutual effect of dynamic evolution process, discussion evolution parameter results of stability and the how formed stable balanced strategy, last using Matlab software simulation evolution process. Research results show that in the interests of both sides stronger consciousness of scientific and technological innovation, technological innovation and cost less, benefits both sides get benefits under conditions of greater, easier to converge to the ideal State Government incentives for Small and Medium-sized Enterprises technology innovation should reasonably control, inspire too much easy to make small and medium enterprises driven by economic interests, leading to interest themselves into a "locked" State.