Abstract: With the rapid development of digital technology and its deep embedding into products and service, digital technology and industry are merging and converging beyond the boundary of traditional innovation theoretical research. It is necessary to explore and analyze key characteristics and the development mechanism of digital innovation theory. In this paper, the connotation, basic types and key features of digital innovation theory were analyzed and the innovation research under management semantic was extended and expanded from perspectives of technology and society. The generative and modular rules of digital innovation,features of policy support, scale, heterogeneity and customer relevance of Chinese digital innovation were also comparatively and deeply analyzed in this paper.Findings indicated that the embeddedness of digital capabilityinto digital innovation process is changing how products and service provide value to users. Massive user base, heterogeneity and multiple stratification will be important opportunities for Chinese firms to promote digital innovation and establish dominant advantage in the future.