Machine building is a leading industry in advanced countries. It provides many industries with machines and equipment as it is the main link in the system of intersectoral linkages. Thus, it secures full employment for highly skilled employees, promotes the growth of the level of educational background of the population and contributes to the development of the scientific and technological potential of the country. However, underinvestment in innovation technologies and processes, a limited character of the import substitution model and an insufficient support of the export model greatly hinder rapid and effective development of the machine-building industry. Specific peculiarities of the machine building development such as R&D intensity, labor intensity, and metal intensity, a need in cooperation and consumer orientation influence their geographic location.