For years Chinese industrial firms accumulated technological capabilities through different modes (technology transfer, indigenous R&D, and foreign technology acquisition, etc.) and different relationship with customers in the market. However, when the Chinese economy entered into the phase of investment-driven development, they were obliged to improve the quality of innovation management if they seek to produce significant innovation outcome and compete with the innovative firms from the advanced economies, i.e., changing themselves from imitators or followers to innovators. Combining the theories on technological catch-up, innovation management, and dynamic capabilities, this chapter deals with the core problem of innovation management that catch-up firms from developing economies have to consider when they are approaching the innovation frontier. Illuminated by an array of empirical cases of Chinese firms from multiple industries, it is found that their common weakness of managing innovation was often the lack of integrating and articulating simultaneously technological change, market change, and organizational change in a dynamic way, i.e., a kind of “dynamic capabilities” of top managers.