Technological innovation is the basis of firm's survival and development in the international environment, which is full of gradually more intense competitions. It is the key element of corporate competitiveness. However, the current level of technological innovation in China is not so well and it restricts the continual development of Chinese economy. The level of technological innovation is connected to the competence of technological innovation directly. A lot of researches indicate that effective portfolio of product innovation and process innovation impacts the success of innovation. U.S.A. and Japan are two typical examples. U.S.A. used to focus only on product innovation ignoring process innovation, which leads to loss of competitive advantages in many industries and slow development of economy. While Japan, and also Germany, win their current economic competitive advantages by their harmony of product innovation and process innovation. The research of this paper aims at how to chose innovation portfolio to Chinese firms and it's principle. From the view of innovation portfolio, R&D competence, manufacture competence, marketing competence, organization competence and financing competence is the five most important competences that impact the product innovation and process innovation according to theoretical analysis. After analyzing the above five competences, we design our questionnaires, using a series of factors to measure the capability of enterprise technology innovation. We deal with all the factors with factor analysis method and redesign our questionnaire accordingly. Then, we collect empirical data based on the new questionnaire. After carefully data analysis with statistic methods, an appraisal system of technological innovation is put forward, which measures the matching of innovation competence and innovation portfolio constituted by product innovation and process innovation. At the end of this paper, the matching is confirmed by the analysis and appraisal of the five innovation competences of Juhua Corporation and ZTE Corporation. Based on the match of innovation and innovation portfolio, some optional approaches of innovation portfolio are pointed out. |