The modern concept of “innovation”, especially the concept of “innovative industry”, originates in the West. The Chinese interpretation of its philosophical meaning started only twenty years ago, so it is natural to passively adopt Western standards in recognizing cultural innovation. “Innovation” thus calls for a Chinese interpretation. Innovative genetic transformation in Chinese culture should be based on Chinese social and cultural traditions. Departing from Western centralism, it is hard to truly understand the internal diversity of oriental Chinese cultural innovative genes, not to mention their inherent conflicts and unity with Chinese characteristics. “Dao” has three meanings in Chinese, namely, origin and ontology, discussion and elaboration (open preaching), and routes. A philological identification of Chinese cultural innovative genes should start from “Dao”, progress along “Dao”, and finally arrive at “Dao” itself. From the practice of “innovative countries” among developed nations, an “innovative country” is not merely an upgraded “innovative economy”. Instead, it is a principle of “new national development and governance” put forward by different governments to adapt to newly emerging innovative economic features. China should construct its own development strategies of an innovative country with Chinese characteristics.