With the advent of the era of knowledge-based economy, technological innovation has become the core-competitiveness of a country/region. As a result, a growing number of countries/regions have begun to take the establishment of innovation system as the driving force of local economic growth. It takes objective and reasonable valuations of the regional innovation capability to secure the establishment of a highly effective local innovation system. It is for this reason that the present thesis probes into the innovation systems of the 31 provinces and municipalities in China, divided by administrative area, to investigate the evaluation of innovation capability of these systems.The core issue of evaluating the local competitiveness can be summerized as the system as well as methodology used to evaluate the regional innovation capability. This thesis researches on the above two aspects by reviewing the literature on local innovation during the past 10 years and defining regional innovation capability through theoretical analyses. Based on theoretical analysis, the present thesis screens the indicators of evaluation system from five aspects—knowledge creation, intellectual flow, enterprise innovation, innovation environment and innovation performance. The indicators are then optimized through discriminability analysis. Finally, factor analysis is refined to be used for evaluating regional innovation capability and evaluation model is constructed.The paper selects data of 31 provinces and municipalities in 2009 in regional innovation to conduct an empirical analysis and combined with the empirical results, analyses the influence factors of the regional innovative ability from three aspects:enterprise innovation factor, knowledge creation and flow factor, innovative environment factor;This paper divides regional innovation into high,middle and low three levels according to comprehensive score of the 31 provinces and municipalities in innovation ability and presents some strategies to improve the regional innovative ability on the basis of the factors which influence the innovation. |