Innovation is one of the key factors that have great impact on the sustainable competitiveness of both individual enterprises and industrial sectors in a regions and/or country such as textile and clothing industries (TC industry for short). To reveal the sustainability of Hong Kong TC industry, there is a need to identify the factors influencing the innovation behavior and capacity of the enterprises in the region. This paper reports a study on what factors affecting the innovation behavior of enterprises in Hong Kong TC industries. On the basis of the 5 key indicators reported previously, i.e. innovation, productivity, flexibility, quality and skill, we applied statistical analysis to identify the principal components in each indicators, and then investigating the relationships among them. Further regression analysis is applied to identify the factors that have significant impact oil the innovation capacity of enterprises in Hong Kong TC industry.