Innovation has been a strategic direction to improve Chinese enterprises' core competence and international competitiveness. Taking Jinan Second Machine Tool Co., LTD (JSMTCL) as a case, this paper sophistically analyzes the industry enviorment that Chinese NC industry faces, the domestic and foreign competitive situation and JSMTCL's advantage and disadvantage. Based on the analysis, the paper studies enterprises' practices of how to cultivate and strengthen its innovation competence. With combination of the actual effects of the independent innovation of enterprise, the experiences of that are also emphasized to be summarized. In the end of the paper, some suggestions on how to promote Chinese machine tool industry's competence are proposed.