This paper studies Needham puzzle from the perspective of the Smithian Dynamics and constructs a framework containing capital-human-technology-instint ion to analyze the reasons of lack of the Simithian Dynamics. Based on the analysis，it explains the reasons of the Needham puzzle，such as industrial production，urban economy，foreign grade and so on. It is believed that the Smithian dynamics perfectly accouns for Needham puzzle and provides new angle for the solution to Needham puzzle.It also provides new inspiration for the economic transformation development of China in the new era. It is suggested that China should fake the advantage of domestic marked scale and focus on industrial innovative development，new-type urbanization construction and foreign trade development to keep the medium-long term rapid increase of economy.