Abstract:This study focuses on innovation capability, with patent as a symbol, as its research objective. By measuring and comparing patent elasticity of industrial enterprises of above designated size, we analyze the factors that gave rise to the unbalanced development of China"s regional innovation capacity. The study found that though the disparity between regional innovation capacities is narrowing as a whole, while such disparity is widening in the middle and western areas, and patent demand price elasticity and patent R D elasticity all present an obvious regional disparity in the above area. Differing from traditional research that believed patent as a product lack of elasticity, we verified that service invention patents of enterprises of above designated size are elastic with regard to patent application fee in the eastern, middle and western areas, and are rich in elasticity towards R D expenditure in the middle area. This conclusion may afford some fresh ideas for future study on regional innovation capacity, and in the end, we propose some suggestions for policy makers for reference.