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This article currently deals with China's wood processing enterprises at a competitive disadvantage under the e-commerce of new environment to explore innovative activities. Based on the urgency of the innovation for China's timber processing manufacturing enterprises, this article analyze and discuss the e-commerce innovation system from the goal of innovation, technological innovation, system innovation, organizational innovation, and environmental innovation on basis of China's timber processing manufacturer. The analysis shows that China's timber processing manufacturer still exists the geographical disadvantage, the weakness of the management capacity, lack of quality standards under the innovation of e-commerce environment, although the economy in the new era of technological innovation and accumulated knowledge that reduced transaction costs. Combined with China's good policy and advantage as latecomer to improve the innovation system of China's timber processing manufacturer in sustainable development.