As the“industrial heart”and the core elements of manufacturing industries，equipment manufacturing is not only a material production sector to provide technical equipment for the national economic departments，but also a strategic industry to protect national security and improve the national comprehensive competitiveness.China has become a big country in equipment manufacturing industry，but the industry is big but not strong，and the capacity of independent innovation is very weak，and the level of basis manufacturing is behind，and the low－level redundant construction and the difficulties of promoting the independent innovation products still outstanding.Revitalizing the equipment manufacturing industry is a major task in the process of industrial modernization，and there is an important theoretical and practical significance of the empirical research on the advanced level of equipment manufacturing industry.In this thesis，the advanced level of China’s equipment manufacturing industry with the developed countries are compared and evaluated by empirical analysis methods，and study the market structure and performance，the ownership structure，firm size and technology innovation of China’s equipment manufacturing industry indepth inspection within the framework of industrial economics.This paper first conducted a comprehensive analysis on the current status of China’s equipment manufacturing industry.Equipment manufacturing industry in China is in a pillar industry status in national economy，in 2010，the equipment manufacturing industry’s industrial value added share of GDP had Exceed 10％.The influence coefficient of equipment manufacturing industry as a whole at the forefront of the sectors in the national economy and is far higher than the average level，indicating that the equipment manufacturing industry possess superior Industrial Relations.From the induction coefficient shows，the demand stimulation of equipment manufacturing industry growth by other sectors is smaller，and it has a strong independence in the development process.From the perspective of China’s industrial development long－term process，there is a long－term cointegration relationship between equipment manufacturing and economic growth.The impulse response function analysis showed that the equipment manufacturing industry influence a great impact on economic growth，but in turn，the stimulation by economic growth is weak.The concept of equipment manufacturing industry is unique in China，and the advanced equipment manufacturing industry has not been uniform defined.This paper argues that advanced equipment manufacturing is a basic industry that use advanced manufacturing technology，with strong international competitiveness，has tremendous impetus on economic growth and industrial upgrading，and focusing on resource conservation and environmental protection，and providing technical equipment for economic development and national defense.There are some features of advanced equipment manufacturing industry such as technology advanced，strong international competitive，high degree of industrial linkage and resource－saving and environmentally friendly.Currently，the U.S.，Japan，Germany and China are the world’s most powerful four countries in equipment manufacturing industry，but compared with developed countries，there is also a big gap for China.First，the technological level of equipment manufacturing products，quality standards，management thought，and labor productivity lags far behind the developed countries.From the point of view of international competitiveness，in addition to automotive products still has a huge gap from Japan and Germany，and other equipment manufacturing products in the international community already has a strong competitive.From the point of view of economic contribution，our equipment manufacturing industry accounts for the proportion of industrial added value has been lower than the German，the United States and Japan，and in the fourth place，and the direct contribution of Chinese equipment manufacturing value added to industrial growth is smaller than developed countries.Threr is also a larger gap of China’s equipment manufacturing industry’s energy consumption and resourcesaving compared with the developed countries.From the comprehensive evaluation results of factor analysis of the 2005－2006 data，the advanced level of equipment manufacturing industry in China is lower than Japan，Germany and the United States，and the gap from Japan is the biggest.The level of development of Equipment manufacturing in China has some differences and regional clustering，which were evaluated，compared and classified using factor analysis and cluster analysis methods.From the results，the advanced levels of Equipment manufacturing in Guangdong Province，Jiangsu Province，Shanghai Municipality，Zhejiang Province，Shandong Province and Jilin Province are higher and other provinces in the second and third grades.The results of Cluster analysis and factor scores are basically the same sort：Eastern Province and Jilin Province are in a leading economic position，while the central and western regions are relatively backward.The advanced level of Equipment manufacturing is a composite index of which the impact factor is very much.Performance and technological innovation are two important symbol of the advanced level of the equipment manufacturing industry，so this thesis takes performance and technological innovation as the indirect variables，by examining the impact of factors on performance and technological innovation to indirectly measure the various factors on the impact of advanced manufacturing equipment.From the regression results of performance model，the higher degree of market concentration will increase the average profit margin of the firms；the higher barriers to entry also make the industry average profit margin maintained at a higher level.From the regression results of market structure model，there is a more significant positive correlation between firm size and market structure variables；from the regression results of market concentration model and entry barriers model，there is significant positive effects between market concentration and entry barriers to each other，suggesting that there is a strong integrity of the elements of market structure.From the point of view of the regression results of the innovation input model of equipment manufacturing industry，both the R＆D expenditure and the R＆D personnel full－time equivalent are showed significant“inverted U”relationships to firm scale variables，indicating that the technological innovation investment showing a degree of “inertia”in the enterprise after the scale expanding to a certain extent；state－owned property has a significant positive effect on R＆D expenditures，while the relationship between the market structure variables and R＆D expenditure is not obvious.From the regression results of the technological innovation output model，there is a significant“inverted U”relationship between the new product sales and firm size，and this relationship is still very obvious after adding other explanatory variables，and there is the same significant“inverted U”relationship between market structure and new product sales.State－owned property variables is still showing positive effects，indicating whether input or output of technological innovation，state－owned enterprises have shown a stronger innovation incentives；using patents as innovation output indicators does not get the consistent results with the expected assumptions.Long－term development of equipment manufacturing industry has a certain regularity，through fitting and prediction the 1988－2015 industrial added value of equipment manufacturing from ARIMA model，the model is fitted with relatively stable effects，from the the results of prediction，the 2015 industrial added value of equipment manufacturing at current prices is about 5.18 trillion yuan.After times of financial crisis，the sustained growth of China’s equipment manufacturing industry relies on stimulating domestic demand and recovery of the international market，increasing independent innovation capability，avoiding industry risk such as risk of macro－economic environment，supply and demand risk，and risk of upstream and downstream sectors，focusing on the development of high－end Equipment manufacturing industry. Key Words： Equipment manufacturing Advanced level Empirical research