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Innovation has become increasingly important to achieving international competitiveness. This paper presents the flow about Internet innovative design, which includes the whole process from requirement to sale: requirement acquisition, group innovation, collaborative design and concurrent design, mass customization and Internet marketing. Internet innovative design is built on open and shared platform, knowledge integration and collaboration, design re-engineering, innovation model as key technologies were put forward. Finally, we discussed development prospect and direction of Internet innovative design. The factor of human being would be more considered despite of advanced technology, knowledge as carrier would be a decisive factor, and distributed collaborative innovation would make design become global design.