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Abstract Taking “GE” and “SIEMENS” as cases, this paper adopts grounded analysis method, investigates the cooperation barriers in the process of reverse innovation faced by the leading multinationals, and summarizes the ability combinations for breaking barriers. Some significant results are found as follows: Firstly, it reveals the evolution law of barriers factors in the process of reverse innovation, namely, the increase of constraint intensity, the grow of innovation subjects, the longer of innovation chain link, and the change from visible resources to invisible resources. Secondly, it summarizes the ability combinations of the leading multinationals for breaking barriers in each stage, which includes parent ability, market perception ability, micro-innovation ability, resource integration ability, risk control ability and ability to meet industrial regulations and so on.
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