As an essential way of entrepreneurship, "innovation-based entrepreneurship" has triggered new thinking about policy theory construction and practical exploration. This paper systematically reviewed the current research status of innovation-based entrepreneurship policy. We defined "innovation-based entrepreneurship" in terms of technology and market. We constructed a framework for analyzing innovation-based entrepreneurship policy in three dimensions: policy resources, stakeholders, and development stages. Moreover, we used this framework to analyze Implementation Opinions on Promoting High-Quality Development of Innovative Entrepreneurship to Create an Upgraded Version of Innovation and Entrepreneurship. 
   The analysis results have achieved the following findings: 
    Firstly, "innovation-based entrepreneurship" can also be referred to as "innovative entrepreneurship". Innovation-based entrepreneurship emphasizes iterative innovation of new technologies, business model, government management, and meeting current market demands or creating future market demands. Therefore, innovation-based entrepreneurship should grasp not only the direction of future technology development but also the direction of future industry development. The success of innovation-based entrepreneurship directly affects the development pattern of strategic emerging and future industries, affecting the innovation-driven high-quality, sustainable development of the national economy and society. Innovation-based entrepreneurship has higher uncertainty than traditional entrepreneurship because of the double uncertainty of technology and the market. The former puts higher demands on the ability of entrepreneurs to grasp the development trend of technology, while the latter puts higher demands on the ability of entrepreneurs to bear the entrepreneurial risks caused by the double uncertainty. 
    Secondly, the policy resources of innovation-based entrepreneurship mainly include talents, taxation, finance, incubation services, and public services. The stakeholders mainly include innovative entrepreneurs and companies, government departments, universities, research institutions, financial institutions, entrepreneurship service institutions, and large and medium-sized enterprises. The development stages include the incubation and start-up period and the growth and development period. 
    Thirdly, the policy case in this paper entirely considers the stage characteristics and the needs of specific stakeholders of innovation-based entrepreneurship. Tax reduction, government procurement, and other fiscal policies are more supportive. However, it is worth pointing out that the current innovation-based entrepreneurship policy still has room for improvement in relevance and operability. For example, the policy of weighted tax deduction for R&D costs policy is more applicable to motivate large and medium-sized enterprises to innovate. However, it has little incentive for innovative start-ups with smaller revenues. 
    Finally, this paper proposes the following policy insights. (1) Innovation-based entrepreneurship is the entrepreneurial activity of high-level innovative talents. The government must take multiple measures and adopt various policy combinations to support and attract high-level innovative talents to join innovation-based entrepreneurship. For example, the government can set up a special innovation-based entrepreneurship guidance sub-fund under the National Emerging Industry Venture Capital Guidance. They also need to strengthen the inspection and testing, certification and accreditation, and in-test certification service systems required for innovation-based entrepreneurship in national incubators and university science and technology parks to enhance the ability of innovation-based entrepreneurship subjects to grasp technology development trends bear the entrepreneurial risks arising from double uncertainty. (2) The effectiveness of innovation-based entrepreneurship policies depends on the relevance and rationality of the policies. The government must clarify the main subjects of innovation-based entrepreneurship policies and the differences in the demand for resource factors at different stages of innovation-based entrepreneurship. They need to strengthen the analysis of the cost of innovation-based entrepreneurship policies, fully consider the characteristics of innovation-based entrepreneurship enterprises, such as financial constraints and insufficient taxable income, choose a policy combination that is mainly supported by fiscal policies, and give policy support that is strong enough to attract high-level innovation talents to join entrepreneurship and gather innovation-based entrepreneurship teams, to form an innovation-based entrepreneurship policy system with Chinese characteristics.