Economy is in important transition period in China. Various factors supporting economic growth in China undergo new changes for long term. The original element-driven economic growth mode has not been suitable for current situation of economic development in China. Innovation-driven development mode is inevitable trend of economic development in China. In the paper, the path of transforming from private economy realization element drive to innovation drive in Yunnan is studied. Firstly, element drive and basic theory of element drive are analyzed in the paper; secondly, necessity of transforming Yunnan private economy from element drive to innovation drive is analyzed. Finally, path of transforming Yunnan private economy from element drive to innovation drive is proposed: speeding up adjustment of industry structure, developing emerging industries, strengthening technical innovation, promoting economic innovation ability, strengthening system innovation, improving system environment; increasing the level of public education, and improving the quality of labor force.
