Abstract: With the rapid growth of the economy, especially the constant increase of economic opening and internationalization, the problem on the core technological innovation in China is relatively low has increasingly clearly appeared. Focus on the technological innovation, the relationship among technical capacity constraint, the erolution path of technological progress, and the performance innovation is analyzed. The results show that the technical capability has a significant impact on the selection of technological progress path, especially on the technical input capability, technical innovation condition, and the accumulation of technical knowledge. The factors involving, government regulation ability, market competition, and market demand have an important impact on the selection of technology progress path,however the affection is quite different. Therefore, the technological progress path should be optimized, highlighting the role of the technical sustainability in order to meet the need of the transformation of China’s economics.

Key words: technological capacity, technological progress path, innovation performance