The paper analyzes the characteristics of innovation activities with the theory of technological regime. Based on the analysis, the paper proposes the planar taxonomy with cost-technology dimension, by introducing technological factor into Porter' theory of competitive advantage. China's industrials are classified into four kinds and three levels according to this taxonomy. Furthermore, the paper proposes competitive strategies suited to developing countries, in light of technological features of China's different industrials. The paper gives a new perspective as well as a breakthrough to the old ideas followed by China's firms making competitive strategies.