Machinery industry is the main sector in investment product sector. Therefore it has an strategic importance. Turkish machinery industry must have a technology policy to achieve competitiveness on a global level. This study, focus on the sectors which can produce and transfer technology and knowledge. Thus it is based on the basis of the sectoral system of innovation which can produce industry specific technology. In this study according to innovation activities 250 different scale firms data were collected using a questionnaire prepared by the Oslo Manual. Data were analyzed. And the results obtained from the data used for researching the level of technological capabilities of the sectors. Finally the sector's position in new technological developments such as Industry 4.0 was evaluated. (C) 2016 The Authors. Published by Elsevier Ltd.