Based on the inputoutput theory, this paper constructs a modified flow matrix of technological innovation diffusion, measures and analyzes the correlation effect and technology innovation diffusion absorption and spillover effect between Chinas equipment manufacturing industry and its producer services industry by using the inputoutput data in 2012, 2015 and 2017. The results show that the absorption and spillover effect of technology innovation diffusion in the equipment manufacturing industry is better than that of the producer service industry, and the threeyear trend of the diffusion effects of technological innovation in the two industries fluctuates greatly; the instrument manufacturing industry, the general equipment manufacturing industry, the metal products, machinery and equipment repair industry and the scientific research and technical service industry feature high absorption and high spillover diffusion；the metal products industry, the transportation equipment manufacturing industry, the electrical machinery and equipment manufacturing industry and the computer, communication and other electronic equipment manufacturing industry feature low absorption and high spillover diffusion; the special equipment manufacturing industry and the information transmission, software and information technology service industry are characterized by high absorption and low spillover diffusion; the transportation, storage and postal industry, the financial industry as well as leasing and business services industry are characterized by low absorption and low spillover diffusion.