National innovation capability is the focus of international competition. This chapter establishes an index system to measure national innovation capability,which is based on four aspects:innovation environment,innovation resources,innovation outputs and innovation benefits. Using the data of 1991-2013,we analyze the overall situation of innovation capability in different stage in China. Then we use principal component analysis to dynamically show the condition and evolution trends. To objectively reflect the gap between China and the world’s leading innovation countries,this chapter also calculated the development index of national innovation capability,the results show that our country is gradually narrowing the gap with United States,but there still has a big gap about the innovation output and innovation efficiency compared to United States.
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