According to the degree of innovation, scientific and technological innovation can be divided into two types: radical and incremental technological innovation, and incremental innovation is more universal and normal and is an important force to push forward industrial upgrading. Since the financial crisis in 2008, radical scientific and technological innovation has become the focus of research on industrial upgrading, while the research of incremental technology innovation has been neglected. Incremental technological innovation has the characteristics of short cycle, continuity, accumulation, progressiveness and opening-up and has low risk to be controlled, however, the research result transformation of radical scientific and technological innovation can boost industrial upgrading, can improve industrial performance by knowledge accumulation, absorption and oligopoly, and can receive industrial competence by creating differentiation. The innovation-driven strategy at new era should emphasize both radical technological innovation and incremental technological innovation, and gradually implement connotation-style enlargement of reproduction by improving present technologies.