Abstract:Using the panel data of manufacturing sector from 2003-2011 years and establishing the absorptive capacity indicator, the technology spillover effects were analyzed. From the overall situation, total factor productivity of 30 provinces was9.8%, and technological progress was the main factor. State-owned, foreign, private economy got different growing rate. Among them, the private economy rose fastest and reached 10.7%, far more than state-owned and foreign economy. Being the large differences of absorptive capacity, the double thresholds were formed in 30 provinces. The values of two way thresholds in state-owned enterprises were 1.060, 3.430, and the threshold values of private enterprises were2.2, 8.260. The state-owned enterprises received less FDI technology spillovers. Being the role of spillovers between industries, the effect is the Increasing function of technology gap in private enterprises.