ANBOUND research team has a recent finding in Haiyang City of Shandong Province that local entrepreneurs have built a typical innovation pattern for traditional industrial development—"Haiyang Mode". Specifically, “Haiyang Mode” is featured by the following innovations. First, it makes innovation in production relations, turning employees to cooperation partners, which greatly improves the initiative of labors. Second, it changes the migration tradition of farmers to migrate out for work. Besides, local government provides favorable condition to support enterprise innovation. Thanks to entrepreneurs' creativity and sponsorship from the government, “Haiyang Mode” has hit a success. All these practical innovations are of great importance for China’s industrial development which is under way for transformation and upgrading.