Manufacturing industry is the key carrier of the technological innovation. The technological innovation is the key force for the development of manufacturing industry. The manufacturing industry in China has experienced the fast development since reform and opening up, but in general, the industry appears to be “large but not strong”. The research utilizes a scientific analysis to detect environments the development of manufacturing in China facing to and capabilities of the innovation. It is critical to persist the principle of “independent innovation, intelligence leaded, green development, and breakthrough in key areas” to realize the innovation-driven development of China Manufacturing. The core of the developments must be to improve the capability of independent innovation, and the main path is to develop the manufacturing digitalized, networked, and intelligentialized. It is important to develop green manufacturing with energy efficiency increased and friendly relationship with environments. Firstly, breakthroughs in key products in the key fields and key manufacturing technology can be realized, and the transformation and upgrading of manufacturing industry can be realized. Finally, we will realized the historic leap of China Manufacturing from high capacity to high capability.