Abstract: Civil-military integration is an important strategy for China to realize the dream of building a powerful country and the strong army dream,and it is of great significance in promoting China's defense the industrial structure industry and upgrading. This paper found that the externalities of civil-military integration are key factories in promoting industrial structure optimization and upgrading by carding the external effect and development venation of civil-military integration. From internal mechanisms,the development of civil-military integration corresponds to the development logic of transition adjustment and innovative upgrade.From external mechanism,the civil-military integration can push forward structural structure optimization and upgrading through the institutional strengthening effect of transforming the government functions,through the capital strengthening effect of optimizing the efficient allocation of resources,through the technical strengthening effect of enhancing the ability of regional science and technology innovation as well as the market enhancement effect of increasing the level of private economic development.