Abstract： The panel data of 1999-2006 years are used to analyze the FDI technology spillover to the manufacture industry in Jiangsu province. The results indicate that in the static model and dynamic model, the horizontal spillover effect changes from negative to positive, and from insignificant to significant; it shows that the crowding-out effect is not been found. FDI forward spillover is insignificant and backward spillover is positive and significant. The backward spillover is more important way comparing with the horizontal spillover. The capital and the labor force are all the important factors to promote the output. The capital’s effects on output are embodied in the increasing demand incurred by the investment.