The author explains the meaning of in novation and points out that in technological innovation,which includes technological change,market success is to be emphasized.The a uthor also analyzes the essentiality of collaboration between participant s of the innovative chain and product chain.Co -operation among science a nd technology institute,university,intermediaries,training organiza tion is fundamental for enterprise,which serves as the core in the innovative system.Co -operation with other enterprises i n the same and relative product chain s is also indispensable and its importan ce grows as the division of labor and s pecialization deepen.Experiences of successful cooperation in the innov ation process in Japan and the United States are studied and some policy re c-ommendations are made.