The equipment manufacturing industry has long industrial chain and strong asset specificity. This paper aims to introduce technology innovation systems theory into equipment manufacturing industry to build industry innovation system model. Based on comparative analysis of the innovation systems of domestic and foreign equipment manufacturing industry, this paper re-defines the elements of the equipment manufacturing industry innovation system, builds innovative system model and analyzes the mechanism. Besides government, industry, university and research institutes, suppliers, competitive/complementary enterprises, customers are considered into the innovation system. These subjects interact with each other through logistic, information and cash flow to construct a dynamic and open system.
