Abstract: Equipment manufacturing industry is the strategic industry and reflects the development level of industrialization. According to the problems are existing in the process of liaoning equipment manufacturing industry development, such as new type of equipment manufacturing S and T innovation being weakness, lacking of senior R and D staff and technology upgrading. We provide some policies from S and T innovation and technology upgrading affecting, production-study-research cooperative innovation and policy support and so on. At the same time, using the factor analysis model to analyze the status of liaoning equipment manufacturing industry and its S and T innovation level. The core innovation is “three stages: of S and T innovation and technological upgrade coupling development, compared with the previous research work of equipment manufacturing industry related innovation.