Abstract: Industrial transformation is the inevitable requirement and internal power of sustained economic growth. But many countries and regions face difficulties in the process of transformation, and it is impossible to provide a microscopic foundation for the industrial transformation if the object, the industry itself, becomes the analytical target. Under the methodology of main body, this paper takes the main body of the industry which includes businesses, individuals, and their behavior and interaction as the starting point to discuss the process and equilibrium decision of the transformation. On the one hand, individuals try to select appropriate behavioral strategies in the established system of constraints and conditions while enterprises change industrial patterns through the decision of integration. On the other hand, businesses and individuals have needs and wishes to change the existing institutions constraints. But inappropriate government interventions often distort or hinder this spontaneous process, thus affect the normal transformation of the industry.