Abstract: This paper discusses a decision-making problem of collaboration knowledge creation in enterprise value chain.It regards a manufacturing enterprise as a dominant one in value chain and it considers four different conditions based on inhomogeneous combinations by one dominant enterprise(which is generous or stingy type) and one collaborative enterprise(which is long-viewed type or short-viewed type).Then it uses differential game to analyze the dynamic decision-making process of collaboration knowledge creation in value chain.After comparing the results under the four conditions,it gets a Pareto optimal creative situation of collaboration knowledge and analyzes the corresponding constrains in the ideal Pareto optimal situation.Meanwhile it comes up with some suggestions to promote achieving the Pareto optimal value in knowledge collaboration mechanism.Finally,a numerical example is given to verify the results of the theoretical derivation.

Key words: value chain, collaboration, knowledge creation, differential game