Abstarct: The main purpose of this paper is to study the effect of TCT and innovation on total factor productivity (TFP) in Iranian industries from 1996-2014 by using panel data method. Amongst influential factors on productivity increase are ICT, innovation, and spillovers. Implementation of ICT like implementation of new technologies effects all sectors of economy. ICT is not only used as technology of production like traditional forms of capital but it course on increase in productivity and economic growth by substitution with other inputs. The statistical population of this survey is Iranian industries and the size of sample is 140 industries. To that aim, we first study the unit root test for variables of this study. Then a regression model is defined to test the hypotheses of study. In order to evaluate if the panel data is more appropriate than pooled data we use chaw test and to evaluate the use of fixed model against random effect model we use Husman test. The result of estimation indicates a positive effect from ICT on TFP. In this model the results show that total factor productivity increase with innovation and ICT.