Textile industry is still a labor-intensive traditional industry in China. There has been no fundamental change in terms of energy saving and emission reduction. The transformation and upgrading of textile industry should be accelerated through technological innovation. In this paper, the authors have established an indicator system for evaluating technology upgrading in Zhejiang’s textile industry from the perspective of innovation. Using this indicator system, the authors have evaluated the overall situation of the textile industry in Zhejiang. And they also make a comparison of the current development situation of textile industry in Zhejiang, Jiangsu and Shandong. Their findings show some insights into further searching of the technology upgrade path of Zhejiang’s textile industry.