It has been a basic national policy that constructing the core competitive advantage of firm, industry, region and nation by technological innovation so as to promote the development of society and economy in China. However, due to the uncertainty caused by the increasing interaction between technology and market, a unilateral implication by technology-insight or market-insight not only cannot help firm to construct its core competence, but also may get it into a hobble. From case study evidences from the Iridium Star communication system, AT&T, PHC, UTStarcom, Huawei, etc. this article makes an analysis and shows that the core competence can be constructed only from the combination of technology and market.