In recent decades, many studies have recognized that innovation based on the application of new technology is a competitive advantage in the global economy. However, this issue is still not really fully understood and strongly implemented in Vietnam. This article will clarify some issues about innovation based on the application of new technology: definitions, the relationship between innovation and new technology application, basic attributes and factors affecting this process. Through that, a number of principled recommendations have been proposed to enhance innovation activities based on the application of new technology in Vietnam in general and Nghe An province in particular in the current context.