Abstract: Firstly, the thesis compares the developed and developing countries' OFDI to promote China's technological innovation in the two aspects of theoretical and empirical analysis. The result shows that the Chinese enterprises have enhances the innovation level significantly by investing the developed countries, but the promotive function of innovation byinvesting developing countries is unobvious. Secondly, establishing the threshold regression model, it is to test whether there is threshold effect of the absorptive capacity factors of OFDI reverse technology spillover. The result shows that the human resource, economic development level and financial development level have crossed the threshold value in most of areas of China at present, they can meet the requirement of absorptive capacity. But the R&D investment in half areas of China has not crossed the threshold value, inhibiting the effect of OFDI reverse technology spillover to promote technological innovation.Therefore, the government should encourage the powerful enterprises to go to developed countries to engage in technology-seeking investment. Thusthey can take full advantage of its advanced technology spillover and transmit it back home. For some mid-west regions which have not crossed the threshold, the government should invest more in technology and increase absorptive capacity.