Abstract:Statistics and the situation of typical enterprises in some industries show that technology innovation capability of Chinese enterprises has been greatly improved but there are still huge capability gaps from advanced enterprises in the world. The analyses in the development courses, internal and external environments as well as the strategies of Chinese enterprises indicates that market-oriented innovation mechanism in the enterprises has been come into being, but there are still many factors restricting those enterprises in their technology innovation. The government needs to further improve the environments to encourage innovation of enterprises. Main policy suggestions of the writer include basic system environment supporting enterprise innovation, combinations of industrial policies and policies for industry technology, systematical policy - making according to the Strategic objectives as well as internal and external conditions of industry development.