This study discusses how technology-based SMEs (TBSMEs) develop different Technology Management Capability (TMC) in the resource searching, resource matching and resource integration process in the perspective of dynamic resource outlook. Using the sample of 298 TBSMEs from Zhejiang Province, this paper verifies that the TMCs reflect in the form of technology recognition capability, technology transfer capability and technology exploitation capability which affects the radical innovation most. Finally, some advice is put forward to improve efficiently radical innovations based on the conclusion of this study.