Abstract: China is facing a complex internal and external environment on improving homegrown innovation. Based on the review of progress made in achieving objectives in contribution rate of science and technology advancement, ratio of research and development (R&D) to GDP, patents, theses, and dependency on foreign technologies set in outline of medium and long-term science and technology planning, the article discusses the internal and external environment for China’s homegrown innovation. It aims at providing reference for improving the national capacity in homegrown innovation.