Abstract: Subsidies can effectively promote technological progress , but to a certain period of time should be promptly quit , and replaced by the new policy design , or the crowding out effect will be happen, resulting in lack of investment in innovation . In this paper, the innovation network is divided into three kinds, that is substantial financial subsidies network, subsidies reducing process network, and no subsidies network. We use multi-agent simulation platform to compare the three kind of innovation network, and find out the evolution characteristic of innovation networks under different dynamic situations.

Key words: financial subsidies, network failure, mechanism, new energy vehicles