Abstract: In the process of participating in the global value chain, the innovation ability of China's manufacturing industry plays an important role. Based on the data of domestic and international manufacturing industry from 2011 to 2016, this paper analyzes and measures the status quo of innovation ability and international division of labor of China's manufacturing industry, and uses the fixed effect regression model to empirically study the impact of innovation ability of China's manufacturing industry on its international division of labor. The research finds that although the innovation ability of manufacturing industry in China and its international division of labor status are generally rising year by year, they are still at a low level; however, it has a significant role in promoting its international division of labor status. On the basis of this study, the paper puts forward countermeasures and suggestions, hoping to promote the status of China's manufacturing industry in the process of participating in the global value chain.