| The Internet is the crystallization of the human wisdom, is the major technological invention in20century, and is the important sign of the contemporary advanced productive forces. The Internet impacts on the world economic, political, cultural and social development profoundly, and promotes social production and living style and information transmission to change quickly. The Chinese government develops the Internet as the significant opportunity of reforming and opening-up and the modernization. The industry pushes forward China’s economic and social development greatly. In the economic field, the Internet is penetrating the traditional industry quickly. Industry boundary is fusing increasingly, new business models and service economy are rising quickly, which lead to derivative some new industry. The industry has became an important engine of economic development that plays an important role in promoting to economic structure adjustment, to transform the mode of economic development. Information technology industry including the Internet has made an important contribution to China’s rapid economic growth. The Internet industry and entity economy are keeping fusion. Using the Internet to transform and upgrade the traditional industries, which drives the adjustment of traditional industry structure and change of economic development mode. Whether China’s Internet industry developes reasonablely, and whether it developes healthy, will greatly influence the operation of Chinese economy.Innovation has always been the most outstanding problem of China’s Internet industry. the problems of Innovation fatigue, malignant competition, imitation innovation are the key factors to restricte the development of China’s Internet industry. It has became a consensus that the independent innovation is the power for lasting development of the enterprise, and the source of core competence. But, not all of the enterprises have the ability and been suitable for independent innovation, and at present, not all of the enterprises have the condition and foundation for independent innovation. For many small and medium-sized enterprises, even some large enterprises, cooperation innovation may be more suitable development road. So, what conditions enterprises’ independent innovation needs? Which enterprises are more suitable for independent innovation? Which enterprises can get more profits and competitiveness from cooperative innovation? And which modes are suitable for the certain enterprise? The original purpose of the paper is trying to answer to these questions. The paper based on the analysis framework of classical AJ model introduces the imitation innovation model to extend AJ model and analyses the cooperative innovation, independent innovation and imitation innovation. This analysis is the theory basis of the paper that studies the present situation and development of Internet industry with actual cases of the industry. Finally, the paper puts forward suggestions of regulation policy to promote the development of industry.The study suggests that imitation innovation against the healthy development of industry, and that at present the industry did not form the atmosphere of independent innovation, cooperative innovation is suitable for the industry, but that in the long term, independent innovation is the key for the healthy development and the core competition to compete with international enterprise, and that the competitive atmosphere that against to cooperative innovation and independent innovation must be guided and regulated effectively by government. |