Abstract:     The equipment manufacturing industry is an important strategic industry related to national security and economic development. It is of great theoretical and practical value to explore how the government can better help equipment manufacturing enterprises to achieve technological innovation breakthroughs. This paper took the listed companies of Shanghai and Shenzhen A-share equipment manufacturing industry in China as samples and empirical tested the influence mechanism and action mechanism of government innovation subsidy on the dual innovation performance of equipment manufacturing industry from 2010 to 2020, based on the externality theory and dual theory. The findings are as follows: (1) Government innovation subsidies significantly enhance the dual innovation performance of equipment manufacturing enterprises; (2) Government innovation subsidies have a significant positive effect on the independent and cooperative innovation of equipment manufacturing enterprises; (3) Both independent innovation and cooperative innovation mode have a positive impact on the dual innovation performance of equipment manufacturing enterprises, but the independent innovation mode has a stronger impact on the dual innovation performance of equipment manufacturing enterprises than the cooperative innovation mode. (4) Independent innovation model and cooperative innovation model play a significant mediating effect in the process of government innovation subsidies in promoting dual innovation performance. In theory, this study is helpful to deeply understand the internal mechanism of government innovation subsidy affecting enterprise innovation behavior. In terms of management practice, it will provide some theoretical reference for Chinese government to formulate innovative development policies for the equipment manufacturing industry.

Key words: government innovation subsidy, independent innovation model, cooperative innovation model, dual innovation performance