| China's construction industry is a prop industry of China's economy which plays an important role in national economy development. However, China's construction industry has developed along the path that contains low productivity, low technology and low R&D outcome in the past more than 50 years. With China's entry into the WTO, developing demand of China's construction industry and threat from competitive foreign construction companies make it an urgent task to improve the innovative ability of China's construction industry.Construction industry technology is the kind of construction technology that evolves to be basic technology of the whole industry. To improve the innovative ability of China's construction industry, the key point is to enhance the ability of creating knowledge and set up an adaptive system that can ensure the created knowledge to circle in the industry. Industrial technological innovation involves a lot factors in and out of the industry, which makes it essential how to arrange their relation.This paper is based on prior researches and examines the question that how to set up the technological innovation system of China's construction industry by means of construction economics, technological innovation economics, mechanism economics and philosophy of science and technology. Starting from reviewing fundamental theory, this paper analyzes the essence of construction technology, the developing trend of construction technology and the components of the system of construction technology, discusses the obstacles to the innovation of construction technology, forms the model of China's construction industry technological innovation system, narrates the functions of the components of the model in details and puts forward the technological innovation strategy for China's construction industry.The results of the paper conduce to improve the technological innovative ability of China's construction industry and constitute industry policy.
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