| Technological innovation is the main force of economic growth. Only through technological innovation, and strive toward improving the technological level, our country may achieve the rapid growth of the total productivity and the connotation of economic growth. As the main body of technological innovation, enterprise's technological innovation capability has attracted much concern. China's enterprises have low capability in technological innovation, which seriously affects the competitiveness of enterprises, as well as greatly restricts the development of our whole country's technological innovation. External policy environment can not stimulate technological innovation enterprises, and enterprises have not set up scientific and effective incentive systems, as well as arrangements for incentive systems of innovation. Based on this, this article analyzes the technical innovation system, gives the appropriate institutional arrangements, and makes suggestions to promoting the progress of technological innovation as well as accelerating the growth of the economy.First of all, this article analyzes the need of the enterprises to use incentives from the nature of technological innovation, and then it analyzes how the theory and method of motivation works on technological innovation and supports the innovation activity. This article sums up that the incentive system can improve the IT staff's capability to devote to the enterprise, and it plays an important role in promoting technological innovation of enterprises. Secondly, it analyzes the effects of incentive mechanism on technological innovation, finding that the status quo of technological innovation incentive mechanism is not very good. It sums up the main problems mainly through the statistical data of "Statistical Yearbook of Science and Technology of China" (2008). On the macro level, the actuality was mainly due to less investment in science and technology, lack of the government's attention to technological innovation, poor external environment for enterprises to develop technological innovation and so on. On the micro level, the reason is that there are many imperfections in incentive mechanism for enterprises. Thirdly, it builds a framework for incentive mechanisms to stimulate enterprises'technological innovation, then forms a complete technological innovation incentive system with property rights incentives, market incentives, business incentives and government incentives. And, on a concrete analysis of the various incentive systems, the article provides specific arrangement, in order to enhance the vitality of enterprises in technological innovation. For example, we can create and improve the national innovation system, strengthen the cooperation between the universities and enterprise. Moreover, the government should adopt preferential policies and the enterprises'organizational structure should be rationalized. Finally, the article analyzes the actual situation of the Zhongguancun Science Park, and then puts forward some suggestions to improve the incentive mechanism. For example, the Industrial Park can set up cooperation mechanism of competition, and then the incentives to entrepreneurs and IT staff should be strengthened. |