Industrial innovation, coined by Cunningham in 1960, is still new to the academia at present despite its importance. The paper discusses the development of industrial innovation theory from them aspects of the origin and evolution, the main tools of industrial innovation management and the main research methods of industrial innovation; and expatiates on the formational symbols of industrial innovation, namely the birth of new industry, the breakthrough of industrial technologies, the extending and reinforcing of industrial chain, and the formation of technological standards.