Abstract: China's economy has entered a new normal, and, the prime minister reports that China’s economic growth needs two engine power mechanisms in 2015; employment, wages and social security have become the key factors. What is the “double engine” on economic growth path of the combination of social security and technological innovation technology diffusion? What kind of dynamic combination between them can better promote the development of China's economy? In this paper, we use the DSEG theory to establish the dynamic system model of social security and technological innovation and technology diffusion, and we study its influence on China’s economic growth and economic fluctuations. Based on the economic data of 2000-2014, the model can be calibrated, and the numerical simulation results show that the model fits the current economic situation better. The variance decomposition and IR analysis show that the impact of technological innovation and technological innovation technology can increase the potential stock of technology in the short term. However, the effect of social security on the economy is reflected in the “transfer” and “linkage” of other economic variables. The positive impact of social security investment can have a positive transfer effect on employment, technological stock, while the “linkage” with the wage can produce a greater impact on the economic output, which makes the Chinese economy continue to reach a new higher level of equilibrium.