Abstract:From the perspectives of R D input and output, based on the panel data of China Industrial Sub-sectors from the year 2004 to 2011, this paper carries out the empirical analysis towards technological innovation effect of China’s free trade. The research indicates that the free trade has the positive effect on the industrial technology innovation activity, while this influential effect is featured by heterogeneity; The phased difference exists at the free trade’s effect on technological innovation, and its effect on technological innovation’s input is much greater than that of technological innovation’s output; There is the inverted shaped non-linear relationship between free trade and R D’s input output, namely, with the improvement of free trade, its impact on technological innovation’s output trends to increase at first and decrease subsequently, besides, each subdivision industry also presents obvious heterogeneous threshold effect.