Based on the field investigation results concerning technological innovation in small and medium sized enterprises in Gansu Province, this paper constructs a three level system for small and medium sized enterprises in Gansu Province to evaluate their technological innovation risks and study the risk resources of their technological innovation. The result shows that small and medium sized enterprises in Gansu Province remain at a low level of development because they take imitation innovation as their main technological innovation model, and the proportion of cooperative innovation and independent innovation is relatively low. The technological innovation risk sources of these enterprises arranged successively from great to small are financial risk, market risk, external environment risk, technical risk, management risk and production risk. The important reasons for the poor technological innovation development of Gansu’s small and medium sized enterprises are the loss of technological innovation talents, the lack of financial support, the imperfectness of innovation system, the deficiency of innovation information, the low level of innovation practice and the small proportion of innovation achievements transformed into products. Enterprises, governments and financial institutions should work together to reduce and resolve the risks of technological innovation in small and medium sized enterprises, and jointly promote the technological innovation level of small and medium sized enterprises in Gansu Province.