Abstract: Focusing on the impact of industrial modularity on company’s technology innovation, this paper takes the mobile communication industry as an example. The analysis is based on the seasonal financial data from 2009 to 2014 for 50 companies listed on Shanghai and Shenzhen stock exchanges. By comparing the innovation behavior of these companies before and after industrial modularity, we find that the industrial modularity can significantly promote the innovation behavior of companies in each modular, and the strength of this effect is closely related to the companies’ competitiveness. The stronger the company’s competitiveness is, the more significant changes are in the company’s innovation behaviors, and vice versa.