Based on Institutional Economics, Evolutional Economics, Comparative Institutional Analysis and Management Theory, tracking the institutional innovation during the development of the private economy, this book constructs a common analytical framework for studies on institutional innovation and the development of the private economy. Firstly, the book analyses the process and mechanism of the private economy's evolution, and abstracts a more common pattern of the private economy's evolution that is featured by interaction between multiple forces and the push of both government and the private, and breaks the limitation of regional pattern. Secondly, the book makes a deep analysis of some key problems faced by the private economy, explores the innovational mechanism in entrepreneurial behavior, financing choice, equity arrangement and governance optimization, and internationalization of private firms. Lastly, the book evaluates the developing status of the private economy and private firms, and gives some advice on institutional innovation and development of private economy. As everyone knows, the main sectors were dominated by state-owned enterprises in China before the implementation of the reform and opening-up policy. The private economy was hardly seen then. After the reform, China encouraged the development of private economy. The big success achieved in China was partly due to the boost of private economy. This book analyses the development of China's private economy, as well as the challenges it faces, and the advices on institutional innovation and development of private economy.