Abstract:This paper puts forward the concept of innovation power, which is divided into two dimensions of innovation strength and innovation potential. The research framework is then established and the model involving the influence of internal competition on technological innovation is established and empirical analysis is conducted. The results show that the internal competition of enterprises has both positive and negative effects on technological innovation. On one hand, the competition can make enterprises carry out innovation contests, thus enterprises’ innovation inputs are increased; on the other hand, each enterprise’s profit decreases with the intensified competition, thus decreased resources are used to innovate and an inverted Ushaped relationship is formed up.