Exploring the innovation driving mechanism of domestic industrial software is very important to promote the independent innovation of China’s industrial software, help China’s industrial software to solve the “neck sticking” problem, and realize scientific and technological self-reliance. Through literature analysis, this paper analyzes the six major innovation driving factors at the industrial level, and then uses the above factors to code the policy documents, news reports, industry development reports, journal literature and other original materials related to industrial software, and deduces and establishes the evidence chain and logic chain between the materials by means of comparative verification. On this basis, the innovation driving mechanism of industrial software in China is summarized. It is found that the innovation driving mechanism of industrial software in China has experienced three stages: construction, disintegration and remodeling, and has gradually changed from “market-oriented” to “policy incentive oriented”. In the short run, policy incentives should still be the driving force for domestic industrial software innovation, while in the long run, market-oriented innovation driving mechanism should be returned.