Abstract: This paper analyzes the influence level of China's current institutional innovation on industrial transformation and upgrading.Taking the theory of institutional innovation and the theory of push-pull as the theoretical basis, using the 31 provincial panel data as the sample, adopting the advanced method of industrial structure, with the modern econometric software Eviews 6.0, this paper makes a concrete analysis and empirical test on the influence of China's current institutional innovation on industrial transformation and upgrading; In view of the current situation, which China's large-scale enterprises, large and medium-sized enterprises and foreign-funded enterprises use higher foreign investment and import and export ratio, while private and state-controlled enterprises use lower utilization of foreign capital, lower export contribution and international competitiveness of products, considering the development characteristics of the eastern part, the central region, the western region and the actual development situation of different regions, this article puts forward the system supply needs to advance with the times, innovate and develop, the necessary enrichment and improvement, and then it effectively promotes the industrial transformation and upgrading.