Science and technology (S&T) are the primary productive forces and the intrinsic motivation and factor of the economy. Technological innovation is one type of the productive forces. Institutional innovation is one form of transformation of the productive relations. Productive forces and relations should coordinate and develop in the interaction. At present, the sources of China’s S&T achievements are mainly research institutes, universities, and enterprises. They account for nearly 80% of the total number of scientific research achievements in China. As the main body, enterprises should play a leading role in the whole process of technological innovation. In the market economy, they directly contact the market, most understand its needs and consumers’, and are the best placed to find and grasp the direction of technological innovation. The key of a macro-management system in science and technology is to accelerate the transformation of government functions.