We　present　evidence　that　banking　innovation　plays　a　key　role　in　technological　progress.　We　focus　on　banks＇　innovative　performance,　and　employ　AHP-Entropy　model　to　evaluate　innovative　capabilities　of　china＇s　banking　by　patent-based　metrics.　We　find　that　innovative　competition　had　significant　beneficial　effect　on　the　quantity　and　quality　of　innovation　activities,　especially　for　banks　highly　dependent　the　total　number　of　patent　and　invention.　Furthermore,　these　results　are　strongly　force　on　china＇s　banking　to　improve　innovative　competition　and　efficiency.