Foreign　technology　dependence　is　an　important　indicator　which　measures　the　ability　of　a　country＇s　independent　Innovation.　For　a　long　period　of　time,　the　indicator　has　become　people＇s　focal　point　of　attention.　This　paper,　proceeding　from　the　concept　of　foreign　technology　dependence,　discusses　the　extension,　connotations,　and　limitations　of　indicators.　By　commenting　the　internal　and　external　study　on　foreign　technology　dependence,　comprehend　the　inherent　connections　between　the　indicator　and　technology　transfer　(and　technology　diffusion).　On　this　basis,　it　makes　the　improvement　of　the　existing　methods　for　measuring　foreign　technology　indicators　and　builds　computation　models　for　foreign　technology　dependence　by　the　stock　of　technological　knowledge　in　order　to　reflect　the　degree　of　China＇s　dependence　on　foreign　technology　introduction　in　a　more　rational　and　objective　manner.　Copyright　©　2008　by　Aussino　Academic　Publishing　House.