Abstract: Innovation researchers are still considering development as mere economic growth without much focus on the social impacts of technological change. This tradition has emerged from a broader understanding of development that includes not only economic but also social and political dimensions. There has been a dislocation within innovation-driven development. After analyzing the studies on innovation and development and their interaction relationship, this article recognizes that they have much in common, the connection of innovation and development is the requirement of both. Innovation should drive social development which includes economic growth, elimination of poverty, protection of environment, improvement of education and healthcare, social equity and so on. This assumption has some important implications for the innovation and development of policy-making process.