Abstract:Servitization can improve the competitiveness of manufacturing enterprises, break through the“big but not strong”dilemma of the manufacturing, and promote the high-quality development of a country’s economy. Therefore, it is of great significance to study how to promote the deep integration of manufacturing and services. This paper takes the global value chain as a pointcut, and expounds the non-linear mechanism that affects the servitization of the manufacturing industry, and further combines the data of WIOD data and Chinese industrial enterprise data from 2000 to 2013 to estimate the global value chain embeddedness of various manufacturing industries and the servitization level of manufacturing enterprises, and conducts an empirical research. The results show that there is a significant positive U-shaped relationship between them, and technological innovation is a potential intermediary channel, but there are differences in the effects on firms with different ownerships, regions and technical levels.