Abstract:Innovation is the lifeblood of the equipment manufacturing industry. Therefore, the innovation process is divided into basic research and development phase and the transformation into the benefit stage, which is based on the data of equipment manufacturing industry in Shenyang. Data is from 2008 to 2015. Use CCR model in DEA method and DEA-Malmquist index method to calculate the efficiency values. At last we come to the conclusion that there is no consistency in the innovation efficiency of different industries at different stages. And overall innovation efficiency in the basic research and development phase is higher than the transformation into the benefit stage, the efficiency of the transformation stage is decreasing year by year. Finally, the system clustering method is used to give advice on the innovation driven path of Shenyang equipment manufacturing industry.