Taking A-share listed companies in China’s strategic emerging industries from 2011 to 2016 as samples， this paper uses simultaneous equation model to empirically test the interaction between financing structure and innovation level， and the impact of life cycle on the interaction between them. The research shows that enterprise financing structure has a significant positive impact on innovation level， and enterprise innovation level can also significantly promote the financing structure， that is， there is an interactive relationship between the two. Further research finds that the interaction between financing structure and innovation level only exists in the growth and maturity enterprises， while in the recession enterprises， there is only one-way influence from financing structure to innovation level， and there is no interaction between them.