Using technology innovation subsidy data and R&D data of Shanghai and Shenzhen Ashare listed companies from 2010 to 2015, this paper analyses the guidance and incentive effects of innovation driven policies on firms innovation behaviors and strategies. The results show that: (1)With the implementation of innovation supplyside reform, firms  R&D investment incentive has been significantly improved, and the will to invest in longterm R&D research has been strengthened. (2) The reform of innovation subsidy identification and the assessment standard policy suppressed local governments invalid innovation subsidies. (3) Enterprises have made rational tradeoffs between shortterm economic benefits and longterm development by reducing designpatent innovation output. (4) The incentive effect of stateowned enterprises is higher than private enterprises. During the innovation supplyside reform, the innovation output quality of stateowned enterprises has increased, while private enterprises still take conservative strategies.