Abstract: In order to obtain competitive advantage,anenter prise needs to select a rational innovation mode under limited resources and competence.This paper analyzes the innovation modes selection of enterprise with evolutionary game theory,based on which impacts of endogenous spillovers and R&D investment on innovation modes selection are discussed.The results show that,the impacts of endogenous spillovers and R&D investment are reverse with stronger endogenous spillovers from competitor,an enterprise would selectradical innovation mode in higher probability and select incremental innovation mode in lower probability;while with increase of R&D investment,an enterprise would select incremental innovation mode in higher probability and selectradical innovation mode in lower probability.

Key words: innovation modes selection, endogenous spillovers, R&D investment, evolutionary game