With the rapid development and spread of scientific and technological innovation (S&TI), countries around the world are more aware of the importance of innovation. This study analyzes how enterprise innovation factors impact the performance of the equipment manufacturing industry (EMI) and the relationship between S&TI capability and the firm performance of the Chinese EMI. Many experts believe that the importance of S&TI to China's EMI is self-evident. As one of the significant industrial Provinces in China, what is the relationship between the Liaoning EMI performance's research and development (R&D) capability? Does it promote the improvement of enterprise performance? What factors affect their relationship? This study invests the panel data in analyzing the impact of R&D on the economic performance of EMI in Liaoning Province, China. Based on innovation theory and the input-output analysis method, this study investigates the contribution rate of the Liaoning EMI to the national economy. It discusses the determinants of the Liaoning EMI's S&TI input and output. The input-output analysis method analyzes the interaction between input-output factors and their influence on enterprise performance. This study found that R&D spending has a multiplier effect on income increase. The economic benefits of Researchers per unit of equipment manufacturing enterprises are disproportionate, and the export of new products created by unit investment is insufficient. The main contribution of this study is to test the impact of R&D input on EMI output through the intensity index. The R&D input of EMI in Liaoning Province has a significant impact on the number of patent applications and sales revenue of new products but has no significant impact on the export of new products. It also examines the differential impact of EMI sub-industry R&D activities on enterprise performance. The findings are likely to interest economic policymakers, business operators, researchers, and individuals seeking to invest in technological innovation in EMI.