Abstract:This paper focused on discussions on why innovations based on the cooperation among industries, universities and research institutes must rely on enterprises as the primary player. In order to create effective and efficient innovation mechanism based on the cooperation among industries, universities and research institutes, the types of innovations in enterprises must be clearly understood first, for which this paper listed four major forms of such innovations. Based on the practical situation of China, creating R&D units within the enterprises for the sake of their own needs and boosting their competitiveness will be the urgent matters for implementing the independent innovation strategies of the enterprise. Experiences in China, and in the rest of the world, show that the interests of various stakeholders in the game must be carefully balanced, and the key to the success of innovations based on the cooperation among industries, universities and research institutes will be the design of a shared interest mechanism.