Before 80', the development of the transportation system was base on the railroad for a long time. On the prerequisite of the high load capacity and convenience, the government-run railroad institutes in every country have to take the responsibility for high commonality. It also results the feature of the natural-developed monopolization for the railroad business. However, as the deficit of the government-run railroad operation is getting worse, it is expected to become a heavy burden for the national finance. Every country starts to look for the method to solve this problem. Privatization and level separation have become the most important innovation methods for most advanced countries in these years. In this article, the author categorized the innovation methods for the government-run railroad business, presently adopted by all advanced countries, according to the operation and business types. He introduced the background of this innovation, the process and analysis of the business features and then obtained the result as the conclusion below: For most advanced countries, in order to completely solve the deficit problem of the government-run railroad business, they all chose privatization at last. It clearly discriminates the commonality and enterprise character that originally added to the government-run railroad and releases the limits to the operation of the railroad business, and then level separates them according to the business and region features and tries to strengthen the self-domination and function of the railroad business operation. There are the points worth referring for us. However, when proceeding the railroad innovation, the problem that it cannot relieve the national financial burden and release the limits to un-fully privatization will simultaneously occur.