By inductive and comparative analysis of the governmental macro-statistics and the investigation results in some Chinese leading corporations, this research explores the development of innovation mechanism, innovation capability and innovation strategy of Chinese corporations. In this research we found out that the market oriented innovation mechanism has been formed in some Chinese corporations in the end of 20th century and Chinese corporations have promoted their innovation capabilities in vast scale in the last 30 years. We argue that the innovation strategy of the Chinese corporations have been transformed from imitation innovation to original innovation and catching-up innovation, but the corporations still need to improve their innovation capabilities and enhance their innovation levels compared with foreign corporations.