Abstract: Based on the knowledge functionfrom endogenous growth theory, the model of trans-log production function is constructed using the stochastic frontier analysis techniqueto estimated the knowledge functionand technological innovation efficiency of Chinese industrieswith two-digit categorical panel data of 31 industries during the periodfrom 1996 to 2007. The main conclusions are as follows: firstly, the innovation efficiency of Chinese industries as a whole is low, secondly, there is significant differenceamong two-digit categorical data of 31 industries, moreover, thirdly, there is no tendency that the innoration efficiency in China raises with the time being. Based on the result of empirical examine, some suggestions on promotingChinese independent innovation were proposed.