Abstract: In view of the limitations on the conventional evaluation of the technological innovation capability of an enterprise, an evaluation model based on DEA and information entropy was developed for the capability. In the model the evaluation result given by entropy method was combined with the computational result by DEA model to modify the conventional evaluation results reasonably, thus making the modified results available to analyze the output performance from different sizes of input unit comparatively. Computational results showed that the ranking of enterprises, which are obtained from such an evaluation, reflects not only the technological innovation performance of those enterprises but also their input-output efficiency and the validity of their output scale. The ranking of enterprises' technology innovation capability is therefore proved reasonable.