Foreign direct investments (FDI) can have a very important function to accelerate the industrialization process of developing countries and transition economies. On the one hand they can cause an increase of industrial output and on the other, can transfer technology knowledge through FDI. Thus, host countries can profit from new technical knowledge through spillover effects and technology transfers from foreign affiliates. This thesis can give answers to the following questions: What are the mechanisms that trigger spillover effects and technology transfers? How can developing countries and transition economies use this knowledge to accelerate their industrialization process? To answer these questions, a conceptual guideline for the promotion of spillover effects has been developed. Furthermore a theoretical model has been created, which analyses the technology transfer from foreign export platform depending on the fraction of intermediate products sourced in the host country. The case studies of Ireland and Malaysia are used to illustrate the results of the theoretical model and conceptual guidelines.