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Abstract: As the “mother machine” of industry,the development of machine tools carries major strategic significance for enabling China's manufacturing sector to achieve a high level of technological self-reliance and strength.By integrating data from multiple dimensions,such as international and domestic production trade,business registrations,and invention patent grants,this paper comprehensively reviews the development history of China's machine tool industry.The study finds that changes in market demand structure are the main driving force for the transformation and upgrading of the machine tool industry.During this transformation process,the ownership structure of the industry has undergone significant changes,with private enterprises beginning to dominate and performing better in innovation activities and business entry.Enterprises exhibit clear spatial agglomeration characteristics in production and innovation activities,while the agglomeration of upstream production services has driven industrial transformation and upgrading.Overall,industrial development follows the principle of local comparative advantage.Further analysis shows a strong consistency between corporate M＆A,changes in ownership structure,geographical agglomeration of enterprises,and trends in innovation activities,which need more attention and in-depth research.The findings not only provide empirical evidence on the effectiveness and pathways of transformation and upgrading in traditional manufacturing industries,but also offer potential insights for the transformation and upgrading of China's manufacturing sector.