Abstract: This paper established the coupling coordination model about two-way direct investment and enterprise's innovation which was based on the physics coupling function. According to the data of28 provinces from 2004 to 2013, this paper got both degrees of coupling and coordination. While calculating the level of regional two-way direct investment and enterprise innovation, the paper analyzed the trend of time changes. The development process could be induced into three stages:harmony, promotion and confliction, through the clustering analysis of the coupling coordination degree. Then the paper finds out the coupling coordination developmental level of these regions are low but increasing. There exist significant regional differences.

Key words: Two-way direct investment, Innovation, Coupling, Coordination, Clustering