Abstract:Technology innovation is the fundamental power of industrial organization evolution.Demand heterogeneous and demand condition form the motive force in selectivity.Enterprises owned different learning abilities and different technology levels produce inhomogeneous impetus.Positive or negative feedback effects in the interactive process between enterprises and environment become the adaptive driving force.Industrial organization evolution is a dynamic function of certain technical knowledge, market demand, industrial supply and institutional environment, resulting from nonlinear co-evolution of interaction of all these influencing factors.