The rapid advancement of large language models (LLMs) has opened new possibilities for automating the proposal of innovative scientific ideas. This process involves two key phases: literature retrieval and idea generation. However, existing approaches often fall short due to their reliance on keyword-based search tools during the retrieval phase, which neglects crucial semantic information and frequently results in incomplete retrieval outcomes. Similarly, in the idea generation phase, current methodologies tend to depend solely on the internal knowledge of LLMs or metadata from retrieved papers, thereby overlooking significant valuable insights contained within the full texts. To address these limitations, we introduce SciPIP, an innovative framework designed to enhance the LLM-based proposal of scientific ideas through improvements in both literature retrieval and idea generation. Our approach begins with the construction of a comprehensive literature database that supports advanced retrieval based not only on keywords but also on semantics and citation relationships. This is complemented by the introduction of a multi-granularity retrieval algorithm aimed at ensuring more thorough and exhaustive retrieval results. For the idea generation phase, we propose a dual-path framework that effectively integrates both the content of retrieved papers and the extensive internal knowledge of LLMs. This integration significantly boosts the novelty, feasibility, and practical value of proposed ideas. Our experiments, conducted across various domains such as natural language processing and computer vision, demonstrate SciPIP's capability to generate a multitude of innovative and useful ideas. These findings underscore SciPIP's potential as a valuable tool for researchers seeking to advance their fields with groundbreaking concepts.