Universities are the main knowledge dissemination and innovation place in National Innovation System. Every year universities input a great deal of knowledge and the teachers and researchers create new knowledge value in the original knowledge basis and realize the value of knowledge value-added through knowledge accumulation, knowledge sharing, knowledge internalization, knowledge and other knowledge-based activities. The paper constructs the model of knowledge value chain in university, and analysis the knowledge value-added mechanism of university. The paper constructs the model of university knowledge value chain (UKVC), and analyzes the mechanism of university knowledge value-added. We analyze the efficiency of university knowledge value-added of 31 provinces in China with the input-oriented BCC model. The research found that Beijing and other 13 provinces had the effective university knowledge value added efficiency and the technical efficiency of universities in Yunnan Province is the highest among these Provinces. University knowledge value-added efficiency of Chongqing and other 13 provinces were ineffective. There was input redundancy or lack of knowledge output in these universities.