Abstract:The healthy operation of economic system can’t separate away from the role of the government and the market,but the border of the market and the government definition and function division is very important. The government and the market are the two fundamental strength of high technology industry development. The market failure because of China’s market development shortage and the government’s lost,dislocation and offside formed from unclear boundary definition,has a huge negative effect on high technology industry development. By introducing “yield” and “cost” and dimension to the X to define the boundary of the government and the market,this paper puts forward through perfecting market mechanism,shifting government functions to strengthen the government and the market’s border,in order to better promote China’s high technology industry development.