Abstract:To analysis the innovation and agglomeration level of Chinese pharmaceutical manufacturing industry, firstly, this paper establishes a theoretical framework of industrial agglomeration, innovation agglomeration and innovation copolymerization, and clarifies the possible logical relations between the three factors; then, based on the precise location of pharmaceutical manufacturing enterprises in China, the DO index proposed by Duranton and Overman are applied to measure the level of industry agglomeration, innovation agglomeration and innovation copolymerization.. Comparing the theoretical framework, we reached several conclusions: chemical medicine manufacturing industry is relatively mature, but the other studied industries require further development, among which the Chinese herbal medicine industry and Biological, biochemical products manufacturing industry are with the lowest innovation level.