This　paper　analyzes　the　optimal　investment　decision-making　rules　of　technology　innovation　project　conditioning　on　considering　the　economic　effects　of　technology　innovation.　The　paper　takes　the　update　of　technology　or　product　by　innovation　as　embedded　option　of　current　investment　opportunity.　Thus,　the　current　project　just　likes　an　American　compound　call　option.　By　dividing　the　economic　effects　into　cost-saving　and　demand-pulling　effects　and　using　contingent　claims　analysis,　we　deduce　the　option　value　of　the　investment　project,　and　solve　the　critical　value　of　optimal　investment　decision-making.　Finally,　we　analyze　the　impacts　of　innovational　market　and　technology　risk　to　investment　decision-making.