This paper discusses the technology adoption under government subsidies according to actual demand for production by Prisoner’s Dilemma game and sequential game and analysis whether or not the rational players have an evolutionary advantage. The results indicate: ① the more rational the competitors, new technology adopted in the earlier time and the higher demand for current technology will delay the technology adoption; ② the more rational the player is the fewer subsidies from the government and the higher demand for current production, the more subsidies; ③ the rational player will not have an evolutionary advantage, but if the subsidy from government is high enough, the rational player will have an evolutionary advantage. Then the G-E model is proposed to effectively push forward the technology adoption.