The article studies history of Russian machine-tool building, analyzes the current situation in this industry and shows prospects of its development. It provides intermediary results of import-substitution policy. We can say that dependence on import has declined, but it is still high. Industry products have low competitiveness both on foreign and home market. The authors show key problems of Russian machine-tool building industry: shortage of new, advanced equipment; deficit of investment resources; high import dependence; serious fragmentation. They identify factors influencing the establishment of modern material production, in particular fast spreading of new technologies, effective and continuous increase in knowledge-intensity of material production, etc. The authors pay attention to the fact that in global machine-tool building two revolutions took place during the last 20–30 years, they are technical and institutional. As a result of the 1st revolution the nature of machines, technology of their production and use changed; as a result of the 2nd one – the way of market organization of machine-tool building products. Russian machine-tool building industry had to catch up with other participants of the market. The authors formulated recommendations aimed at upgrading the procedure of developing machine-tool building clusters. Theypropose to set up a system of integrators that will be able to consolidate market suggestions of Russian machine-tool builders and supply to customers finished production sections and lines.