Abstract: Fully considering the influence of energy saving and emission reduction,environmental protection,market competitiveness on technology innovation driving effect in China,this paper puts these three factors into technical inefficiency equation. Based on the panel data of strategic emerging industries over the period 1997-2012,this paper applies stochastic frontier analysis on study the driving effect of technology innovation on sustainable development of strategic emerging industries,and analyzes the key factors influencing the driving effect of technology innovation. The empirical result shows that technology innovation plays a significant positive driving effect on sustainable development of strategic emerging industries,the change trends are steady growth year after year; new product development funds and environmental pollution control investment play a significant positive role on the driving effect of technology innovation; energy-saving technological transformation has negative effect on the driving effect of technology innovation. Finally,policy suggestions are put forward.Strategic emerging industries should improve the technological innovation investment system, adopt the flexible management mode of technology innovation, establish dynamic mechanism of technological innovation, and promote the collaborative innovation ofdomestic and foreign technology symbiotic unit, realize the sustainable development of strategic emerging industries.