From the perspective of evolutionary economics and system dynamics, this paper makes a systematic analysis of Huawei''s early technology R&D by comprehensively using research methods such as literature analysis and interview, and establishes a system dynamic model of technological innovation and evolution of late developing enterprises. It is found that new product development is the driving force of capital growth, technological innovation is the driving force of product development, talents and R&D organization are the driving force of technological innovation, talents are also the driving force of organizational structure optimization, and the key to give full play to the value of talents is talent incentive; The market not only provides the evolving market power for the late developing enterprises, but also transmits the competitive pressure of the early developing enterprises and the late developing enterprises, which promotes the late developing enterprises to continuously develop products and integrate innovation. Suppliers provide the power for the late developing enterprises to quickly enter the market and carry out modular innovation of key technologies; Entrepreneurs and R&D organizations transform external power and pressure into internal power, so as to coordinate the internal power and evolutionary selection mechanism with the external market competition.