Abstract: To explain the mechanism of network embedding on the business model innovation of technological entrepreneurship, based on the network embedding theory and the new institutionalism theory, we use the organizational legitimacy as the mediating variable and construct the conceptual model of the impact of network embedding on the business model innovation of technological entrepreneurship. According to the survey data of 409 enterprises, we use the structural equation model to make empirical test. The results show that: 1) structural embedding and relation embedding have significant effect on the business model innovation of technological entrepreneurship. Among them, the effect of relational embedding to the business model innovation of technological entrepreneurship is more remarkable; 2) Organizational legitimacy plays partial mediating role in the relationship of the business model innovation between the structural embedding and relational embedding. Promoting the organizational legitimacy can help technological entrepreneurship accelerate the business model innovation by the network embedding.