Shanghai's economy has entered the innovation drive critical period of development, transformation, especially since the outbreak of the global financial crisis in 2008, under the influence of the double pressures of domestic and foreign market demand downturn, such as land, Labour and capital inputs in less power to promote the development of economy, and with technology innovation, business model innovation and business innovation as the driving force of economic development mode has not yet become a dominant force.Manufacturing is Shanghai's economy one of the key factors to realize innovation drive, the transformation of development and manufacturing in Shanghai's economy not only occupy the important position, is an indispensable support strength, is also the important carrier of Shanghai kechuang creating a global center, is the main force of scientific and technological innovation.But at present, the development of the manufacturing industry in Shanghai with rising production costs, development space (land restriction) and lack of innovation power and other major bottleneck problem.To solve these problems, we need to break through the traditional thinking of industrial development, combined with the characteristics of China's market economy and the goal of Shanghai urban development, focus on the supply side structural reform, through the "cost reduction, short board", new way of looking for transformation and upgrading of manufacturing in Shanghai.