Abstract:Though cultural industry has become a strategic industry of national economic growth, but at present it still lacks of innovation and competitiveness. To promote the innovation of cultural industries, this article analyzes the functional objectives and institutional defects of copyright system and government funding, and select the appropriate mechanism according to the market characteristics and the status of the industry. Combined with the current pattern of cultural industries and the development of digital technology, this article suggests increase copyright protection and optimize government funding, guiding the innovation and development of cultural industries.