Abstract: Incentive structure has a decisive impact on the innovation efficiency of core technology, but there is still a lack of research on how to allocate incentive structure to achieve higher innovation efficiency and its internal mechanism. By using grounded method to analyze the incentive structure of Huawei's core technology innovation, it is found that emotion is the basis of internal relationship of various incentives, material incentive is the basis of organizational incentive and spiritual incentive, and organizational incentive is the basis of spiritual incentive and its internalization; The overall incentive intensity of an enterprise is related to the innovation intensity. High innovation goals produce great innovation resistance and innovation pressure at the same time. High intensity incentive can eliminate employees' innovation resistance and transform external pressure into innovation power; Under the constraint of total incentive cost, the overall incentive level can be improved by adjusting the incentive content and frequency; The goal of incentive is to make employees consistent with the company in economic, emotional and spiritual aspects, continuously envolve in and focus on technology R&D, and constantly break through core technology, so as to realize the accumulation of core technology and capital of the enterprise, and form an enhanced loop.