Abstract:R&D directly Changes the cost of a company and the concentration ratio of market is gradually raised by most industrial R&D because technological complexity is continuously raised and because R&D creates scale economy.Under the background of patent protection and license system, when sunk cost of R&D is relatively small,the welfare of the company is better than market oligopoly or monopoly because of the rapid development rate and competitive market of many companies.Cooperative innovation and domestic competition can optimize market structure and raise R&D ability of China enterprises in order to answer the challenge of economic globalization.