| The amount of FDI presents steady-state growth in recent years. FDI plays animportant role to our country`s economical growth, industrial structure adjusting and localindustrial cluster development. FDI fasten on east littoral, especially Pearl RiverDelta,the Yangtze River Delta and the Bohai Rim area. The zone of foreignerinvestment concentrated appears some FDI-led Industrial clusters. The main part of itsinternal foreign enterprises are among the business has maintained close contact,forming arelatively complete industrial chain,local businesses or difficult to access,either of whichcan only enter the technical content and low value-added component. General speaking,FDI accelerating local economical growth is mainly dependent on the Spillover Effect ofFDI, so how do the local enterprise use the spillover effect of FDI to upgrade in theFDI-led Industrial clusters. The study on this problem can not only enrich the FDI theory,but also shepherd local enterprises upgrading practice.This article analyses in academic from industrial cluster, spillover effect of FDI andcluster upgrading, which based on it and combined the fact of Suzhou to amylasedemonstration, to checkout the technology spillover effect of FDI to Suzhou and thetechnology diversion behavior has improved local enterprises technical progress. Under thetrend of FDI solely ownership, insufficient of local enterprises innovation ability, imperfectin the social credit system and Intellectual property protection system, the Structural blockof FDI, and Closed production systems, how to upgrade in the global value chain is notonly with relation to local enterprise, but also close to local Economic Development Modeand the adjustment of industrial structure, which needs the local government play its duerole. Such countermeasures as following can upgrade in the global value chain: Cultivatethe domestic market demand to break the Structural block of FDI, industries upgradingplan of local government, cultivate the innovation ability of local enterprises and developthe advanced producer service industry.This paper studies the contents is divided into six chapters, main contents are asfollows: For the first chapter of the research background, the research significance, theresearch methods and research target of exposition.The second chapter for related theory and literature review, mainly introduced theindustry cluster, FDI technology spillover effects, industrial cluster upgrade theory.Industry cluster mainly from industrial cluster theory traceability, concept definition,formation background, type, function and life cycle, the angles FDI technology spillovereffects from the main technological overflow effect definition, technology spillover way,technology spillovers restricting factors and relevant empirical research review; From thetheory of global value chain theory origin, value chain driving force and governancestructure, value chain and industrial upgrade Angle were analyzed.The third chapter for FDI investment distribution and local industrial cluster analysis,mainly from the analysis of the distribution of FDI investment behavior, FDI leading placethe formation of industry cluster, the types and characteristics of dominant industry cluster,FDI, and the evolution of dynamic mechanism of local industry cluster of FDIinvestigated.The fourth chapter for FDI technology spillover effect and technology transferbehavior analysis, from FDI technology spillover effect mechanism model, the influencefactors, analyzed spillover effect measure technological overflow effect; Technologytransfer from FDI motivations (multinational companies, host country), technology transferapproach, technology transfer mechanism models and technology transfer process oftechnology innovation mechanism analysis technology transfer; Based on the suzhouregion technology spillover effect and technology transfer effect validation.The fifth chapter for FDI and local transformation and upgrading of industrial clusterupgrade, mainly from FDI dominant industry cluster of factors, current upgrade inupgrades in the dilemma facing the predicament and how to breakthrough and suggestedcountermeasures, combining with the actual suzhou area are analyzed, in suzhou industrialpark in how to upgrade are analyzed.The sixth chapter for research conclusions and Suggestions for future research.
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