Abstract—This paper proses a three-tier innovative business model for firms, consisting of a competitive advantage facet, a conceptual model and a financial model, and advances an innovation business model on the determinants of competitive advantage in global competition. Competitive advantage is the most important core concept in the field of business strategy, and it is also the sum of the performance of enterprises in the competitive market. Through the three-tier business model, the overall synergy of competitive advantage is exerted. We believe that this paper will stimulate future empirical research on this important topic and positive implications for firms` managers and policymakers.