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Abstract This paper establishes an assessment index system based on the theory of the innovative value chain, evaluates comprehensively the technological innovation intensity and empirically tests the spatial interaction effect between technological innovation and industrial agglomeration using the panel data of 30 provinces in China during 2005-2015 through spatial simultaneous equation model. The results show that the technological innovation intensity in China is not balanced and the regional difference has a tendency of expansion. There is a remarkable mutual promoting effect between technological innovation and agglomeration of producer services, the multiplier effect of technological innovation on agglomeration of producer services is more obvious. The spatial spillover effect of technological innovation on agglomeration of producer services is negative, but the spatial interaction effect of agglomeration of producer services on technological innovation is not significant. The interaction effect and spatial effect between technological innovation and agglomeration of producer services should be considered, stand on the frame of spatial system, strengthen technological interchange and develop industry cluster district, in order to realize the interactive development of technological innovation and industrial agglomeration.
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