Abstract:This paper calculates the green technology innovation capability of 26 industries in manufacturing industry from 2008 to 2015 by considering the SBM directional distance function of non-conforming outputs and Malmquist Luenberger index model, and uses the system GMM to analyze how the green technology innovation capability affects the value chain upgrade 0f manufacturing industry for research. Results show that that the process of green technology innovation ability from weak stronger, value chain upgrade 0f manufacturing industry from decline to rise gradually, the influence of green technology innovation ability impact on value chain upgrade 0f manufacturing industry as a non-linear "U" relationship.Therefore, it is of great significance to intensify the R & D of green technology innovation and promote the innovation of science and technology with green as the core to the value chain upgrade 0f manufacturing industry.