With the gradual implementation of the policy of integration of industry and education, the enterprise practice system for college teachers has become an important means to improve teachers’ comprehensive ability. Effective teachers’ enterprise practice system can promote teachers’ in-depth cooperation with enterprises and enhance their vocational skills and knowledge system. This paper studies the innovation path and incentive mechanism of enterprise practice system for college teachers in the context of industry-teaching integration. The study adopted the experimental method, literature method, interview method and mathematical statistics method, and selected 100 teachers from a university in Province D to conduct the experiment, which was divided into the experimental group and the control group, and the experimental period was 12 weeks. Teachers in the experimental group adopted the innovative enterprise practice system and incentive mechanism, while teachers in the control group continued to adopt the conventional way of self-study and practice. The results show that the theoretical knowledge ability and professional skills of the teachers in the experimental group have been significantly improved. In terms of theoretical knowledge, the mean score of teachers in the experimental group increased from 2.472 to 3.977, an improvement of 1.505, and the difference was significant (P=0.005). In terms of professional skills, the teaching ability, teacher-student interaction and comprehensive scores of the experimental group also increased significantly, in which the teaching ability score increased from 2.411 to 3.992, and the teacher-student interaction score increased from 2.314 to 4.048, and the differences were all statistically significant (P<0.05). The conclusion shows that the innovative path and incentive mechanism of teachers' enterprise practice system in the context of industry-teaching integration can effectively improve teachers' theoretical knowledge ability and professional skills.