As the leading of China FTZ, Shanghai FTZ has been operating for more than two years and it does promote the development of Shanghai and surrounding areas. This paper verifies the Shanghai FTZ spillover effects on economy, talents and the aggregation of policy level. We establish the spillover effect model and conduct simulation experiments on VENSIM platform based on the data from Shanghai FTZ. The results indicate that the development of Shanghai FTZ plays positive effects on the economy, talents and policy growth of Shanghai and surrounding areas, although the spillover effects are mostly channeled through short-term funds, talents and policy aspects. This paper implies that it is better for FTZ to format a virtuous circle of economic system and a replicable innovation method aiming to drive and support the development of Shanghai and the surrounding areas.