Abstract: More and more incumbents are innovating their business models based on their own resources and capabilities as well as external opportunities, constantly generating new business models and achieving disruptive growth. Based on this, the concept of business model derivative innovation is proposed on the basis of business model innovation. Taking the market and technology as the driving factors of business model innovation, combined with the innovative methods of exploration and exploitation, four types of business model derivative types and specific derivative mechanisms are identified. The research shows that different derivative types have different performances in value proposition, value creation and value acquisition, and the derived business models show different relationship attributes in space, time sequence and degree of innovation. The discuss of the specific derivation mechanism, identification of types and different relationships of business model derivative innovation will echo the relevant theories of business model innovation and business model portfolio, meanwhile, will provide valuable insights and guidance for the enterprises to carry out business model innovation and the investment and governance of different business models.