Abstract Based on hypothesis that innovation capability plays the key role in the formation process of innovative enterprise, the paper argues that innovation capability is the essence of innovative enterprises and the basis of survival and development, and we should play sufficient attention to innovation capability when judging one firm is innovative enterprise or not, Then, it tries to prove this hypothesis through expert interviews and factor analysis and found out that some basic dimensions of innovation capability, such as the innovation resources, and management control over the process of innovation and motivation have been included in evaluation system of innovative enterprise. Finally, an evaluation index system of innovative enterprise based on innovation capability is given in this paper.
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