Abstract This paper reviews the evolution of the theory and method of technology capabilities measurement (TCM) based on patent data,and analyzes the advantages and disadvantages. The model measuring technology capabilities in our country by patent data is constructed and carried on an empirical data analysis. This paper mainly use the methods of technological capabilities measurement, such as Unit Root Test , Cointegration Test and Validity inspection, and at the same time, it built a modified model and analyzes the relationship between patent data and technology capabilities. It come to the conclusion that patent data has a reliable function to measure technology capability in our country, and it has not only stability in the long time but strong balance modification ability in the short term.
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