Abstract:The industry-education integration is an important measure for ordinary universities to transform into application-oriented universities, and for local enterprises to improve their competitive advantages to transform into innovative enterprises. To achieve the goal of “two transformations”, we must promote the in-depth development of the industry-education integration that highlights the functions of collaborative education and collaborative innovation. Therefore, this paper based on the multi theoretical fusion perspective of stakeholders, resource dependence, system theory and dissipation theory, combined with local industrial demand, the industry-education integration model of application-oriented institutes can be divided into shallow level industry-education integration model, medium level industry-education integration model and deep level industry-education integration model. Using the grounded theory to extract, we can extract the factors that affect the industry-education integration in application-oriented institutes, including the internal factors of the main body, external driving factors and multi coupling factors, including 15 important factors. The factors that affect the industry-education integration in different modes are heterogeneous. Taking Shanghai Institute of Technology as a case study, to discuss the development path and implementation effect of deep integration of industry and education. These conclusions provide theoretical and practical guidance for the in-depth promotion of the industry-education integration in application-oriented institutes, and further promote the construction of a powerful country in education, science and technology and talent.