This study postulates a partial mediation model(study model I) and a whole mediation model(study model II) to examine the effect on endogenous rural development of local innovation capability strengthening in the local industry promotion project, the establishment of promotion system, and the revitalization of local economy. To accomplish study purposes, 169 response samples from 85 project groups which drive the local industry promotion project were verified using SPSS 12.0 and AMOS 5.0. The results showed that in the partial mediation model, the local innovation capability strengthening had a significantly positive effect on the establishment of promotion system, the establishment of promotion system had a significant effect on the revitalization of local economy, and the revitalization of local economy had a significant effect on the endogenous rural development, while the establishment of promotion system and local innovation capability strengthening didn't have effect on the endogenous rural development. In the whole mediation model, the local innovation capability strengthening had a significant effect on the revitalization of local economy, the establishment of promotion system on the revitalization of local economy, and the revitalization of local economy on the endogenous rural development. According to the verifications of study model I and II, the endogenous rural development is achieved after the revitalization of local economy through the establishment of promotion system and the local innovation capability strengthening. From these results, this study presents suggestions, limits of study and directions in the future study.