Evaluating　and　analyzing　the　technology　innovation　capability　(TIC)　of　Beijing＇s　Manufacturing　Industry　(BMI)　should　take　into　account　three　main　problems:　first,　to　find　the　main　factors　that　influence　the　TIC　of　BMI;　second,　to　decide　on　a　method　for　evaluating　the　technology　innovation　performance　of　the　manufacturing　industry;　third,　to　determine　a　method　for　ranking　TIC　for　each　sector　of　the　manufacturing　industry.　Currently　in　China,　with　respect　to　the　TIC　evaluation,　the　basic　study　method　is　to　divide　TIC　into　the　various　composing　main　factors,　and　then　use　a　comprehensive　evaluation　method　to　carry　out　the　evaluation　and　analysis　of　TIC.　This　method　of　study　neglects　the　interactions　between　each　main　factor,　but　the　interactions　influence　TIC.　Because　of　this,　our　research　uses　factor　analysis　to　evaluate　the　TIC　of　BMI.　In　this　paper　we　first　establish　an　indicator　system　with　three　layers,　each　of　which　has　several　indexes.　In　the　first　layer,　we　used　three　indexes:　input　of　resources　into　technological　innovation,　R&D　ability,　and　output　as　a　result　of　technological　innovation.　Then　we　selected　18　sectors　of　Beijing＇s　manufacturing　industry.　The　18　sectors　have　certain　TICs,　which　we　analyzed　using　SPSS　12.0.　Finally　we　evaluated　the　TICs　of　the　18　sectors.　The　main　conclusion　of　this　paper　is:　of　the　three　factors,　the　input　of　resources　into　technological　innovation,　is　the　main　factor　that　affects　the　TIC　of　Beijing＇s　manufacturing　industry.　The　TIC　of　the　mechanical　and　electronics　sectors　are　best.　©　2006　IEEE.