International direct investment (FDI) is one of the important ways to promote economic development in today's world. Along with China's economic developing, foreign direct investment come into China continuously. In 1960s, with the FDI the research deeply, technology spillover effect of FDI was first proposed. Technology spillover effects have also become a hot topic to many experts.
In China, since the reform and opening, private enterprises in China have become a pillar of economic development. The eastern part of the development of private enterprises in China is most rapid and is the most large-scale development. By the end of 2001, in Zhejiang, Jiangsu, Guangdong, Shandong, number of scale private enterprises were among the nation's top four. And Zhejiang, Jiangsu, Shandong are all in the eastern part of China. How to make technology spillover better services for the eastern private enterprises is an important task at this stage.
This thesis discusses the core concepts of spillover effect, the main elaborate of technology spillover effect. Then it discusses the FDI spillover effect on the eastern private enterprises. The final chapter is based on the third discussion on the eastern private enterprises improve technological innovation through technology spillover of FDI to make a few suggestions.