Abstract: The contribution rate of S&T progress is a comprehensive indicator of the combination of S&T with economy, and the transformation of economic development mode. China started to calculate this indicator from early 1980s, mainly by solow residual value method. This paper introduces the intangible capital to recalculate the contribution rate and achieves a different result. The result shows that the contribution rate of S&T in China has reached 50.9% at the period of 2005-2010. This paper discusses the achievements of the new calculated method and gives some suggestions on its improvement.