Abstract: Technological innovation is the source of the vitality of enterprises, especially in telecommunication enterprises with information technology as their core. In this thesis, from the angle of actuating technological innovation actuating, the authors analyze the institutional arrangement which influences technological innovation in telecommunication enterprises. Based on the above analysis, the strategies of system of reform in the internal enterprise are given.

Key words: technologicalinnovation, telecommunicationenterprise, incentivemechanism