Abstract:Innovation is the key momentum of economic growth. Currently, the major economic communities in the world all consider Innovation Economy as a main force boosting economic development. Particularly in some developing economic communities, innovation has been established as their national strategies to emphasize its importance. However, Innovation Economy is a dynamic and coupling process full of uncertainty, which cannot be designed simply using the “top-level design” method. The core factor impacts the endogenous growth of innovation is the design of the innovation mechanisms. How to construct an effective and incentive compatible framework of innovation mechanism is definitely the prerequisite and the fundamental guarantee of a country to improve its innovation ability and to step into the intelligent-based economy . This paper focuses on the mechanism design of Innovation Economy, combining the international successful experience, to construct and complete the mechanism and framework of the Innovation Economy of our country.