The development of data science provides new opportunities for innovation in Chinese manufacturing enterprises. As the manufacturing sector urgently needs transformation and upgrading, studying how data empowerment drives innovation in manufacturing enterprises is of strategic significance. This work reviews domestic and foreign research from five aspects: product innovation, business model innovation, long-term competitiveness of enterprises, innovation ecosystem of enterprises, and industry upgrading. It summarizes the main forms and objects of data empowerment, analyzes the paths and mechanisms of data empowerment, and creates a systematic research framework to explore the “black box” of data empowerment that drives manufacturing innovation. Such a framework provides theoretical references for the transformation and upgrading of China’s manufacturing sector. Finally, future prospects are proposed to address the extant research gaps and to conduct more indepth research on innovation driven by data empowerment in the manufacturing sector.