The reasons for inspiraing innovation include: at the market level, technological innovation can help enterprises gain technological monopoly status in the market and obtain super-normal profit; in terms of innovative attributes, new technologies have externalities which require compensation; concerning the need of national strategies, innovation is the dominating point of future technology. At present, innovative inspiration is currently based on financial inspiration, which is divided into supply-side and demand-side. There exist different views on the effect of innovation inspiration: firstly, it promotes enterprises to innovate, including cost sharing and risk reduction; secondly,it has signal incentive effect, which makes it easier for innovative enterprises to obtain financing; thirdly, it has crowding out effect, including "cheating compensation" with moral hazard and subsidy into R & D personnel's salary; fourthly, it has mixed effect, such as incentives in the early stage of innovation can share risks and cultivate the market, but in the long run it will damage efficiency. The main obstacles faced by innovation inspiration are market mechanism defects, inaccurate evaluation of new technologies, insufficient policy grasp by innovation incentives, shortage of promotion from policy entrepreneurs, and lack of effective evaluation and supervision. Looking forward to the future of innovation inspiration, we need to recognize that China's basic research investment as well as the industry demand is huge, and the industry-university-research transformation requires to use the innovation of government purchase and other intermediaries to link the supply and demand. What's more, the transition from command control to market incentives will stimulate the endogenous driving force of the market, and we need to correctly understand the government's scientific and technological functions to transform from selectivity to inclusiveness.
