Abstract:By employing grey relational degree analysis, selects 5 indexes, which are enterprise innovation fund input, enterprise innovation personnel input, enterprise knowledge output, enterprise innovation earnings, and governmental fund support, to investigate the contribution degree of technological innovation elements to the development of equipment manufacturing industry of Shaanxi. The conclusion indicates, enterprise innovation fund input is the most significant element on contributing to the development of equipment manufacturing industry of Shaanxi, secondly enterprise innovation earnings, then governmental fund support, enterprise knowledge output, and enterprise innovation personnel input. The recommendation is that, Shaanxi should encourage enterprises in equipment manufacturing industry to increase R D funding via tax preference, financial support, market mechanism optimization, service assurance, and other methods, enhance government procurement on new products of enterprises, increase governmental fund input on technological innovation of equipment manufacturing industry, improve creativity and technology output ability of R D personnel, improve capacity of conversion and diffusion of technological outcome.