Two-stage evolutionary game analysis of digital innovation diffusion based on multilayer complex networks

Purpose Digital innovation has brought about disruptive changes to socioeconomic development. How to promote diffusion of digital innovation has become a key issue. This research explores the dynamic mechanisms and interactions of diffusion of digital innovation among enterprises and consumers. Design/methodology/approach This study constructs a two-stage evolutionary game model based on multilayer complex network for diffusion of digital technology innovation (DTI) in a scale-free enterprise network and diffusion of digital innovation product (DIP) in consumer small-world network. It examines different factors and their combinations on the strategic choices of enterprises and consumers and validates the simulation results through real-world case analysis. Findings The results indicate that when a certain threshold is exceeded, increasing R&D subsidies can increase diffusion rate of DTI among enterprises, and increasing consumption subsidies can increase diffusion rate of DIP among consumers. R&D subsidies and consumption subsidies play a complementary role, and the effective diffusion of digital innovation can only be achieved when at least one factor is at a relatively high value. In addition, the higher the average degree of the consumer network, the better diffusion effect of digital innovation. Reducing consumers’ tendency to free-riding on DIP can promote diffusion of digital innovation. Practical implications From the perspective of government, the government should increase digital subsidies to exceed the threshold required to generate diffusion effects and emphasize the synergistic effect of R&D subsidies and consumption subsidies. It also should improve regulatory policies on ownership of digital products to minimize the impact of free-rider effects on the market. From the perspective of enterprise, the enterprise should adopt advanced high-level technology strategies for large-scale markets and medium-level technology strategies for small-scale market sizes to promote the diffusion of DTI. It also can enhance consumer interaction through digital platforms to promote the diffusion of DIP. Originality/value This study constructs an evolutionary game model based on multilayer complex network. The model links consumer network to enterprise network and portrays the resource differentiation between dominant enterprises and fringe enterprises. This study explores the synergy mechanism of DTI’s diffusion of enterprise with the DIP’s diffusion of consumer. It improves the insufficiency of the existing research in which the DTI’s diffusion of enterprise and the DIP’s diffusion of consumer are separated from each other.