Abstract: Income distribution makes different effects to independent innovation from intermediate variables of demand quantity and structure. After the theoretical analysis on consumer’s change in demand around income distribution, and the empirical test on this mechanism with nationwide and cross-province data, some conclusions are drawn: firstly, inverse “U” shape exists in the relation between income inequality and independent innovation, therefore, moderate income gap is good for innovation, while its further amplify bad for innovation; secondly, income inequality increases parts of incident’s income, which induces amplify of demand of innovation products and motivates corporate innovation power; thirdly, income inequality inhibits upgrade of incident’s consume structure, which makes lower income group hard to form effective demand and lowers independent innovation; fourthly, increasing income of low-income group and expanding scale of middle-income group in the distribution reform can more effectively cultivate market demand of innovation products, and thus make for innovation.