Using the space Moran index and the econometric model of spatial lag model and the spatial error model, we make a space econometric analysis about technical innovation inputs and outputs in the year of 2006 among the 17 cities of Shandong Province. The results showed that: Enterprise R & D investment and human resources investment play an obvious role in the regional technological innovation capability; There is a clear concentration phenomenon of technical innovation capability in some areas ,but the technological innovation capability in other areas has not obvious reverent to the surrounding areas ,that is, there is no certain space randomness.