This paper reviews the trend of education indicator theories and finds that the policy-oriented indicators offer core information for policy decision. At the empirical part, in order to present the logic of constructing policy-oriented education indicator system, we put forward a set of education indicators related to the innovative city policy of Beijing. At first, all the innovative city policy targets proposed by government of Beijing are reviewed. For each concept to be measured within each policy target which is related to the education requirements. At the same time, we also incorporate a set of indicators for monitoring the education development of Beijing. At last, we discuss the critical issues that should be considered when the indicators are applied into reality.