Recently, General Secretary Xi Jinping pointed out at a symposium on private enterprises that "enterprises are the main operating entities, and the endogenous driving force of enterprise development is the top priority. Private enterprises and entrepreneurs should be full of entrepreneurial and patriotic passion, constantly improve their ideal realm, cultivate patriotism, think of the source and progress when they are rich, promote the entrepreneurial spirit, concentrate on strengthening, optimizing and expanding enterprises, and firmly become builders of socialism with Chinese characteristics and promoters of Chinese style modernization." As the most dynamic and resilient component of China's economic system, the strength of private enterprises' independent innovation ability not only affects the sustainable development of enterprises themselves, but also relates to the layout of national innovation strategies and the transformation and upgrading of China's economy. From the global leadership of 5G technology, to the overtaking of new energy vehicles, the innovative breakthrough of drones, to the continuous breakthrough of power batteries, in order for private enterprises to achieve rapid and sustainable development and continuously enhance international competitiveness in today's increasingly globalized economy, they must improve their independent innovation capabilities in order to stand firm in the fierce international competition and achieve leapfrog development. To strengthen, optimize, and expand enterprises, it is necessary to further build an innovation friendly ecosystem. In this regard, many places have already taken the lead. Hangzhou has streamlined administrative licensing matters from 734 to 321, with an approval deadline compression rate of 85%, promoting enterprises to invest more energy in innovative development and market competition, and creating a favorable institutional environment for the growth of innovation entities represented by the "Six Little Dragons of Hangzhou". Open up channels for factor flow and improve the market-oriented innovation ecosystem. Innovation is the creative combination process of production factors, and the efficiency of the flow of innovative factors directly determines the vitality index of the innovation ecosystem. As an important force in market innovation, private enterprises rely heavily on the efficiency of factor flow and the quality of innovation ecology to unleash their innovative momentum. Currently, private enterprises are facing problems such as insufficient investment in basic research, shortage of common technology supply, and disconnection between innovation chains and industrial chains in the allocation of innovative resources. Based on the new requirements for high-quality development of private enterprises, it is necessary to reserve space for competition in diversified technological routes through inclusive tax incentives, research and development subsidies and other policies, fully leverage the decisive role of the market in innovative resource allocation, continuously stimulate the innovation vitality of private enterprises, and lead them to make greater contributions to promoting technological innovation, cultivating new quality productivity, and building a modern industrial system. We need to deepen the market-oriented reform of factors, break down institutional barriers, build a unified national factor allocation market, and create a fair, open, and effective market competition environment. The construction of the Yangtze River Delta Science and Technology Innovation Community provides a paradigm, by establishing a cross regional collaborative platform of "unveiling and leading", realizing the full chain docking of demand side "unveiling", supply side "unveiling", and service side "following the list"; The "talent enclave" model implemented in Suzhou Industrial Park is more innovative. Enterprises set up research and development centers in underdeveloped areas, and talents work locally but enjoy the benefits of the eastern region. This not only alleviates the pressure of excessive factor aggregation, but also drives regional collaborative innovation. Cultivate innovative genes and forge endogenous innovation mechanisms within enterprises. Innovation culture is the soul of enterprise innovation, and the cornerstone of stimulating employees' innovation potential and forming a sustainable innovation atmosphere. Private enterprises and entrepreneurs should establish a value system of "encouraging experimentation and tolerating failure", establish a differentiated innovation evaluation system, implement "milestone" assessments for basic research, and allow for "ten years of silence"; Conduct phased evaluations of application development and maintain moderate pressure; Adopting a "quick trial and error" mechanism for product iteration to accelerate knowledge accumulation. By organizing innovation competitions, setting up innovation reward funds, and other forms, individuals or teams who have achieved results in technological innovation, management innovation, etc. are commended, creating a good atmosphere where everyone wants to innovate, dares to innovate, and is good at innovation. We need to strengthen training and education on innovative culture, so that innovative concepts can be deeply rooted in people's hearts and become a code of conduct that employees consciously follow, thereby stimulating the innovation enthusiasm and creative vitality of all employees, and implanting innovative genes into the blood of the enterprise. To optimize the structure of R&D investment, it is necessary to focus on exploratory research of cutting-edge technologies and strengthen the development of applied technologies, forming a virtuous cycle of mutual promotion between basic research and applied research. By means of government industry university research cooperation, introduction, digestion, absorption, and innovation, we can broaden the channels of funding sources, improve the efficiency of R&D fund utilization, and provide solid financial support for sustainable innovation. Private enterprises should establish an innovative dynamic adjustment mechanism, monitor the dynamic changes of technological evolution, market demand, and competitive situation in real time through digital intelligent tools, accurately grasp the timing and intensity of innovation investment, and tilt innovation resource allocation towards cutting-edge fields such as artificial intelligence and biomedicine. At present, the new round of technological revolution and industrial transformation is at a historic juncture of significant breakthroughs. As an important force for innovation, private enterprises are facing both the challenge of "sailing against the current" and the opportunity to "overtake on a different track". General Secretary Xi Jinping pointed out that China's private economy has now formed a considerable scale and occupies a significant weight, providing a solid foundation for promoting high-quality development of the private economy. Enhancing the endogenous driving force of independent innovation in private enterprises is a profound transformation that involves cognitive revolution, institutional restructuring, and capacity reconstruction. It requires continuous optimization of the institutional environment, deep improvement of market mechanisms, and even more importantly, the genetic reconstruction of the enterprise itself. When policy dividends, market vitality, and internal strength of enterprises resonate, it will surely stimulate the innovation courage of private enterprises to be the first in the world, release the market vitality of Qianfan Competition, inject surging momentum into the high-quality development of the Chinese economy, and win the initiative and control in the new round of technological revolution and industrial transformation. Author: Gu Qifeng (Associate Professor, School of Economics and Management, Beijing University of Posts and Telecommunications)