The paper discusses the questions of five aspects against the development of China's iron and steel industry at first.Based on the theory of industrial innovation system(IIS),the front theory of innovation, and related theories,the paper analyzes the characteristics of industrial innovation in iron and steel industry,puts forward three management measures,and gets its main conclusions as follows: the developmental questions of China's iron and steel industry are low industrial innovation capability,weak innovation management and distempered IIS;the essential way to promote endogenous innovation capability of the industry is guiding the development with the thought of IIS;it's a good plan for development the industry to advance endogenous innovation;the technological innovation of the industry is mainly incarnated in the process of innovation;and the questions of industrial distribution and environment protection can be solved through positive and efficient industrial innovation policies.