The Switzerland World Economics Forum reported that, in 2006, the ordinal of Chinese competitive ability suddenly dropped, behind Indian by 11 places. This disparity is caused by no means of accidents, but by a series of political, economic, cultural, and traditional factors. The mutual impact of institutional vicissitudes and the technological advancement act the decisive function in the social reforming time. Only to promote the institutional innovation, to develop enterprise culture that suits the technical innovation, to breakthrough the old order restraint, and to relieve of the shortage of entrepreneurs, can promote the enterprise innovation ability, strengthen our technical innovation ability, and promote the international competitive ability.