Abstract:Enterprise innovation is an important innovation force in a country. It not only contributes a lot of innovation achievements, but also provides the necessary material basis for innovation in other fields such as national defense, education and so on. Enterprise innovation is the result of material capital and human capital. Through the analysis of building a two-dimensional property rights system model to enhance the innovation ability of enterprises, we can see that the increase of the supply of physical capital property rights system or the supply of human capital property rights system can make the Pareto optimality of enterprises move upward and to the right, so that the economic organizations can achieve equilibrium at a higher level, so as to enhance the output of the overall system supply of enterprises That is innovation performance. Human capital is the key element of enterprise innovation. When the supply of property rights system of material capital is sufficient, China should strive to increase the supply of property rights system of human capital to protect the property rights of human capital, so as to further enhance the innovation ability of enterprises.