Abstract: A model of business technological innovation based on balanced scorecard is established according to the relationship between technological innovation and business strategy.Applying the model,business technological innovation could be planed,controlled,and managed by the balanced scorecard.And the risks coming from the innovation can be effectively reduced,and the innovation is made more efficiently when business technological innovation directly connects with business strategies and strategical performances.

Key words: technological innovation, balanced scorecard, business strategy, strategical performance, system dynamics