Abstract:Through the analysis of its educational resources, innovation ability and the current situation of economic development, the innovation and development dilemma of "strong innovation foundation, medium innovation ability, weak economic development" is found in the economy of Xi'an city. The problem is caused by the disequilibrium of arrangement on innovation funds and lack of compensation incentive on R & D personnel, resulting in double structural imbalance on both R & D activities and innovation achievements between university and enterprise, which led to double efficiency losses on allocation of innovation resources and innovation driven development. It is suggested that the government should activate the innovation efficiency of enterprises, improve the market efficiency of R & D activities and effectively implement the strategy of innovation driven development through the measures such as optimization of industrial structure and the structure of enterprise innovation activities.