Aiming at the status and problems of the development of Chinese medicine industry，establishing management system of traditional Chinese medicine business on the basis of knowledge，with knowledge network，knowledge collaboration，knowledge reuse and knowledge innovation，providing new operation mode for the herbal industry collaborative innovation based on knowledge. This has a positive significance for the realization of collaborative innovation management system in the business operation of the traditional Chinese medicine industry value function，meeting the needs of various knowledge of traditional Chinese medicine industry business，truly realizing the collaborative innovation management system in the actual business operation role based on knowledge，promoting Chinese medicine industry further optimization and development of business innovation.