With China’s rapidly growing economy recently, China has become the one of world’s most promising economic power. With this economic development, more and more economists pay attention to institutional issues. For the Hebei Province which surround the capital, economic development is the primary goal, but the system of innovation can not be ignored. At present, many government departments and economists and scholars have done a lot of researches on the issue of institutional innovation and proposed more feasible approaches, but these studies are fragmented. This paper intends to use the theory of institutional innovation economics system, to analysis the development role and impact in Hebei’s economy.The main contents of this paper are as follows. Chapter1introduces the background and significance of Hebei institutional innovation system and regional economic development, sums up the relationship researches between the domestic and foreign institutional innovation and regional economic development study, and describes the basic theories, methods and innovations. Chapter2analyzes Hebei Province’s economic development policies. Chapter3using the aforementioned theory, combined with the actual economic situation in Hebei Province, use model analysis to propose institutional innovation system has a direct contributions on economic growth, and correct the traditional economic growth model. Through above analysis, Chapter4indicates the current problems in the process of innovation system in Hebei Province from industrial structure, human resources, regional coordination and foreign investment. Chapter5from the perspective of institutional economics, under the guidance of the regional economics, put forward the proposal of institutional innovation in Hebei Province.
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