Shanxi Province is China’s very important Resources and Energy Base. Since the establishment of New China, Shanxi has produced 12 billion tons of raw coal, among which more than 8 billion tons was consumed throughout the country. Because of the long-term, large-scale and excessive exploitation, single pillar industry, deterioration of the ecological environment, low utilization rate of resource, frequent coalmine accidents and resource depletion are all exposed gradually. The deep-level of contradictory on the resource-based economic development intensified and restricted the sustainable, economic and social development seriously. In 2010 Shanxi Province was formally established as The National Resource-based Economy Comprehensive Reform Testing District. However, the transition of resource-based economy, whether upgrading of traditional industry or the development of new strategic industry, demand a strong foundation of technological innovation and industry competitiveness. This article focuses on the status of technical innovation and industrial competitiveness of Shanxi Province and discussed the relationship between technical innovation and industrial competitiveness and reform of resource-based economy. Finally this paper puts forward some suggestions for reference only.