This paper tries to answer the question why finns do not innovate actively, though they should be the principal entity of endogenous innovation, from a prospective of technology evolution. The industrial environment of emerging technology is emphasized to analyze the endogenous innovation in Chinese enterprises. The process of endogenous innovation in NSBIC, which is an IC design finn, is analyzed as a case. From the case study, we can answer the questions above in a certain extent, and believe that to improve the industrial environment is very important for the inner technological innovation company.