Innovation policy is one of the most important items of government’s public policy. It is related to the level of innovation and productivity growth, affecting the economic growth and the international competitiveness. This paper proposes a theoretical model to analyze the impact of R D subsidies and intellectual property rights (IPR) protection on R D investment. Using the data tests the conclusions of the theoretical model. We find: First, R D subsidies and IPR protection share a significant positive relation with R D in more high-tech intensive industries; Second, R D subsidies and IPR protection are complementary policies in promoting the R D investment. stronger patent rights may complement more generous R D subsidies in fostering innovation in more high-tech intensive industries. Therefore, choosing the appropriate combination of innovation policies can promote the R D investment and drive social innovation and economic development.