| The development of small and medium-sized enterprises is very important to the stability and growth of China’s economy. Technological innovation is the new thought of market demand, and the source of the development of small and medium enterprises. It is important for small and medium enterprises to pay attention and gradually realize technological innovation, it is also important to the sustainable development and to enhance the competitiveness of its modernization, and realize the enterprise’s own structural adjustment, But the reality of the situation, the small and medium enterprises in China has not formed the effective mechanism of technological innovation and the internal power, even if in the world.there are few technological innovation enterprises, so the study of small and medium enterprises’ technological innovation ability is very important.On the premise of combining domestic and foreign research status, this paper first defines the definition and connotation of technological innovation capability of small and medium-sized enterprises, and analyzes the basic theory, the dynamic mechanism and the advantages and disadvantages of the technological innovation of small and medium-sized enterprises. Secondly, from two aspects which are the technological innovation capability of enterprises and the potential to enhance technological innovation ability, it conclude two primary criteria, six second level criteria, thirteen indicators of small and medium enterprises technological innovation capability evaluation index system. After this, this paper analyzes the current methods and models of comprehensive evaluation, and chooses the method combined AHP-fuzzy and Topsis as a comprehensive evaluation method for small and medium enterprises technological innovation capability. This method is a practical and effective method for the evaluation of technological innovation capability of enterprises, which is based on the advantages of the two methods. In order to use this method to evaluate and analyze the 6 small and medium enterprises of a large group in Dalian City, the paper expounds the operation steps and the calculation model of the evaluation method. Finally, from the government and small and medium enterprises themselves two angles are given suggestions to improve the technological innovation ability of small and medium enterprises. |