This paper argues that Technological Accumulation is the foundation of Technological Innovation. In China, firms face many difficulties in technological accumulation. Their lower accumulation level makes it much difficult for the firms to engage in technological innovation. The less efficiency of technological accumulation is the actual obstacles of Chinese firms’ innovation. So in promoting Chinese firms’ development, the first important thing to do is to increase their technological accumulation efficiency and speed up their accumulation process. In this paper, the authors will firstly discuss the characteristics, substructures and dynamic mechanism of technological accumulation, then will elaborate the interrelationship between technological accumulation and technological innovation. Finally the authors will discuss the present situations of and problems in Chinese firms’ technological accumulation, the contributing factors of the situations and problems will be analyzed from administrative, individual, and organizational dimensions.

This paper argues that Technological Accumulation is the foundation of Technological Innovation. In China, firms face many difficulties in technological accumulation. Their lower accumulation level makes it much difficult for the firms to engage in technological innovation. The less efficiency of technological accumulation is the actual obstacles of Chinese firms’ innovation. So in promoting Chinese firms’ development, the first important thing to do is to increase their technological accumulation efficiency and speed up their accumulation process. In this paper, the authors will firstly discuss the characteristics, substructures and dynamic mechanism of technological accumulation, then will elaborate the interrelationship between technological accumulation and technological innovation. Finally the authors will discuss the present situations of and problems in Chinese firms’ technological accumulation, the contributing factors of the situations and problems will be analyzed from administrative, individual, and organizational dimensions.