Abstract: This paper argues that, the motive source and the influential factors that decide the strength of innovation dynamic of state-owned enterprises will be more complicated than that of general enterprises because of their double identities: “
Enterprise
” and “State-owned”. Generally speaking, the leader’s will is innovation dynamic core of state-owned enterprises and motive source is the enterpreneurial spirit. Without changing the basic systems of state-owned enterprises,
China
must reform and perfect the evaluation systems of enterprises and their leaders, and emphasis the importance of S&T innovation to stimulate their innovation enthusiasm.