The number of high-quality talents flowing into China from 10 education developed countries and the panel data of 30 provinces and cities in China from 2001 to 2015 are selected to empirically analyze the technology spillover effect and diffusion path of overseas intellectual inflow to China. The results show that the inflow of overseas talents has a significant positive effect on China’ s technological innovation, and the technological spillover effect of the inflow of foreign talents is more significant than that of returnees. The inflow of overseas talents mainly realizes technology spillover through three paths: value-added human capital, intellectual investment incentives, and talent relationship network. In the regional sample analysis, the inflow of overseas talents has a more significant effect on technological innovation in western China, while the technological spillover effect in eastern and central China is not significant. Self-R&D investment has a significant effect on innovation output, and innovation output is the most elastic. Therefore, China should continue to expand international exchanges and cooperation in science, technology, culture, and education, encourage the inflow of overseas intellectuals, and especially guide the flow of talents into the western region.