Abstract: The paper compares difference in technical innovation incentives between enterprises which have entered the market and those just entering from angle of industrial organization.It is mainly investigated from 4 respects:sunk cost effect,transition effect,efficiency effect, proxy cost and innovation impetus.In addition,enterprises’innovation motives are also affected by R&D spillovers.A concrete analysis of enterprises’innovition activities caused by R&D spilloverswn inside and between industries is given here.

Key words: innovation incentives, R&D spillovers, industrial organization, technical innovation