Value engineering is introduced into a selection of optimal technological innovation projects. The function and cost factors of a project have been analyzed from the viewpoint of the whole enterprise, and new index systems of evaluation on the project are constructed. Since many factors influence the success of a technological innovation project in direct ways or in potential indirect ways, it is difficult to find a common appraisal method to achieve a satisfactory and effective scientific result. Therefore, multistage fuzzy synthetic evaluation is adopted. In addition, this novel method can be programmed to be used in similar fields, so it is of high practicability.