Private Entrepreneur is the heterogeneous human capital during China' s globalization and transition . Based on the panel data of the eastern 9 developed provi nces during the period of l995 2009 , this paper calculates the Mal mquist productivity index of the provi nces and decomposes theminto efficiency change and technological change components . After controlling regional innovation and FDI , we explore the impacts of heterogeneous human capital - private entrepreneur on the Mal mquist productivityindex ,efficiency change and technological change . The paper finds that entrepreneurship is different fromthe human capital which is measured only by education . It contributes more to the economic development . Besides , FDI substitutes the entrepreneurship and the entrepreneurship combined with regional innovation promotes the economic growth . It indicates that entrepreneurship is the cause and motivation of the regional innovation and economic  development .