Abstract:The innovation value sharing through knowledge transfer and knowledge integration has become a new way to the cooperative development of the scientific technological services industry and the manufacturing industry. Based on the knowledge transfer theory and the cooperative innovation theory, the cooperative innovation dynamic model of both industries was constructed from the system dynamics perspectives. The Vensim DSS software was engaged to analysis the realization path of the cooperative innovation in both industries when the knowledge integration continuously advances, as well as the variation trends of the knowledge potential energy, the knowledge innovation rate and the knowledge transfer rate in both industries. Based on these studies, the integration innovation factors and the policy factors,including the knowledge demand and knowledge absorption ability of themanufacturing industry,and the incentive mechanism, financial input and talent construction of the government ,were considered to analysis the sensitivity of the innovation rate in both industries. The results shows that, when the knowledge integration continuously advances, the knowledge potential energy grows exponentially, the knowledge innovation rate and the knowledge transfer rate increase continuously, and the integration innovation factors and the policy factors have striking positive influences on the innovation rate, which can provide decision supports for the cooperative innovation development of the scientific technological services industry and the manufacturing industry.