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The rapid development of economy brings serious environmental pollution problem. Green innovation, as the connection point between government environmental regulation measures and sustainable green development of enterprises, has become one of the important choices for the transformation and development of enterprises. Based on the classic model of “prisoner’s dilemma” in game theory, this paper deeply analyzes the relationship between green innovation and performance. It is found that it is easy to get into trouble if only relying on the spontaneous green innovation within the enterprise. Applying appropriate pressure outside the enterprise can promote the change of green innovation and bring long-term benefits to the enterprise.

Green innovation, government incentive and enterprise performance are explored from the perspective of game