Abstract: Government technology policy and enterprise technology strategy and the co-evolution between them have great impact on the innovation performance of Aircraft and Spacecraft Manufacturing (ASM). This paper constructs the matrix analysis model of technology policy and technology strategy, puts forward four technological innovation types of ASM, and sums up the development process of aviation and aerospace industries, respectively. Then based on the S&T activities data of Chinese ASM from 1995 to 2010, we apply empirical model to analyze the relationship of Technology policy, strategy and innovation performance. It has been found that the technology policy and strategy have a positive impact on the industry’s innovation performance. Our results also show that the development of the industry is more dependent on the improvement of domestic technology. And the indigenous innovation has been chosen by China as the main development paradigm. We also reveal that the technology policy is more related to the leading strategy adopted by Chinese aerospace companies.