Many factors affect the diffusion of generic technology due to the variety of generic technology and the multiplicity of diffusion carriers. Therefore, it is very urgent to determine the main factors that influence generic technology diffusion. Based on theories of industrial generic technology diffusion, this paper constructs a differential game-based model between government and enterprises. Then, this study explores the key factors that affect the diffusion strategy of industrial generic

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... nology innovation and analyzes the possible method for improving industrial generic technology innovation diffusion. The following conclusions are obtained. Incentive measures, rewards, and penalties play a key role in the diffusion of generic technology, and the costs and benefits incurred by the diffusion are critical to the diffusion of generic technology. Also, the net income of enterprises has a positive impact on the adoption of generic technology diffusion. After that, this paper carries out data simulation for result verification and provides some policy implications.