Abstract: Using the textile firm data from the census of National Bureau of Statistics, this paper observes the effect of three innovation factors to productivity at industrial level in an extended Cobb-Douglas production function and a stepwise comparison design. The three factors are independent research and development, technology introduction, and labor training. Each of them is significant at industrial level and more powerful infuence is produced while three factors are involoved together. Independent research and development has stronger influence in middle firms, private and HMT firms, but not powerful in foreign firms. Technology introduction has a stronger influence on state-owned firms and foreign firms. For developed area of textile industry, innovation has a stronger effect in Shandong than in Jiangsu and Zhejiang.