By establishing an endogenous growth model with knowledge-driven R&D, this paper aims to investigate the relationship between international technology spillover, host country's absorptive capability and endogenous economic growth. The solution of the competitive equilibrium problem shows that long-run growth arises from the improvement of absorptive capability and higher human capital stock, while the relationships between openness, technology gap and steady-state growth rate are uncertain. Based on our sample data set of China's 30 provinces during the period of 1996-2002, econometric estimation of China's economic growth is also made. The estimation findings demonstrate that technology spillover is essentially dependent on host country's human capital investment and degree of openness, and FDI is a more significant spillover channel than import.