This paper presents innovation design method of product on basis of the typical theory of new product development and research of the process and industrial design in the different phases of the product development function for small and medium enterprises in China's. On this basis, the paper put forward to ensure full participation in industrial design and play the role of segmented flow, determine the objectives and tasks for each stage of development, the personnel involved in the coordination method, steps and related links. In addition, we studied the evaluation system of product development, according to the stage characteristics of new product development process for enterprise, using different evaluation methods, established the overall evaluation system of industrial design process model.