Abstract: This paper is designed to reveal the value chain spillover effects of China OFDI’s reverse innovation and corresponding policy implications. The study is conducted by using China provincial panel data of 2006~2015, together with the technique of threshold regression. Research Findings: OFDI has the significant value chain spillover effect as far as the reverse innovation is concerned, and its positive impact on technology development capability is greater than that of technology transformation capability. The dynamic reverse spillover of OFDI shows positive and incremental marginal efficiency and positive "U" non-linear feature, in the stage of technology development and technology transformation respectively. The spillover laws of two-stage innovation all have significant spatial heterogeneity. Especially the dynamic characteristics of the positive and diminishing marginal efficiency of OFDI reverse spillover in the eastern region deserve attention. In the new era, OFDI in the eastern and central China all have the comparative dynamic advantage of reverse innovation value chain overflow, while the effect in the western region is relatively limited. Based on the perspective of innovation value chain, a full empirical analysis is carried out on the stage heterogeneity and spatial heterogeneity of OFDI reverse innovation spillover. Research Significance: It provides the enlightening references for coping with the inherent relationship between OFDI and technological innovation more accurately and rationally in the new era.