As the constraints of military security regulations, to the holders of critical knowledge (or group) having inadequate incentive system of property rights and other reasons, the core employees of aviation industry have not high willingness to share for their critical knowledge, especially tacit knowledge generated in R&D, production within a certain range. In this paper, innovative practice have been studied about knowledge innovation and knowledge sharing of the scientific research institutes and manufacturing corporations of the AVIC(China Aviation Industry Corporation), the innovative system is designed from the China's aviation industry's overall plan of knowledge innovation project and the dynamic mechanism, which may trigger the aviation industry to enhance the intellectual capital of the endogenous mechanism to promote the innovation performance and overall performance improvement.
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