For keeping the competition advantage, firms must organize project of radical innovation with project of incremental innovation.

After the 1990s, thetechnology innovation of enterprises has incrementally changed from theincremental innovation primarily to the disruptive innovation primarily,a lot of disruptive technology entered into our community withirresistible force.

However, It is also essentially important for enterprises to compare with radical innovation and incremental innovation.

This paper summarizes the differences between disruptive technology innovation and incremental technology innovation in terms of the characteristics of technology,product and market.

By examining an array of governance mechanisms,we analyze how different governance mechanisms influence the chosen between radical innovation and incremental innovation through managers behavior(the leverage of CEO s capability and concerning firms long term development).

Based on the former research, we study bureaucratic culture, supportive culture and innovative culture the effects of two different types of technology innovation:incremental innovation、r.

Why do American firms tend to radical innovation and Japanese firms tend to incremental innovation,this paper analyses some reasons in national innovation systems,financing ways,corporate culture,labors market,innovators,and than puts forward a comprehensive model.