Abstract: The inventions of network technologies, especially the wide applications of the Internet, have greatly changed the circulation and distribution of products and services, profoundly impacted the values and behaviors of consumers, and brought the society into an era of network economy. After experiencing several alternations of prosperities and declines, Internet has become an important means for service, and the Internet-based service industries are becoming more and more important to the society. How to innovate and how to design effectual innovation models are the new focuses for the Internet-based service enterprises. Against the background, the concept and the range of Internet-based service are discussed, the contents of Internet-based services innovation are clarified, and the basic analysis frame of innovatory model is put forward. Finally, some advices are given as the references.

Key words: Internet-based service industry, connotation, innovatory model