Abstract: The development of science and technology can expand the utility boundary of the system， and in the process of system change， an incentive environment for technological innovation is constructed. Technology and system form a co-evolving innovation system based on two-way interaction. The non-linear effects that the two exert on each other tend to produce multiple feedback. When system changes lag behind the pace of scientific and technological innovation， the system design deviates from the actual scientific research work， and the implementation of the system is not coordinated， the co-evolution slows down and deviates from social needs， resulting in intensified level conflicts and lost effectiveness of coordinated development. To maintain the open system far from the balanced state of technology and institution co-evolution， it is necessary to clear the institutional channels for the flow of the elements of the innovation system， to formulate a scientific and efficient institutional management system， and to unify the local and overall interests， so as to ensure the dual driving forces of technological innovation and institutions innovation in economic and social development. an open system far from the balanced state.

Key words: technological innovation, institutional change, co-evolution, self-organization, balanced state