Abstract:This paper takes technological innovation and human capital as the research perspective, selecting the panel data of 31 provinces in China from 2005-2015 years, utilizing the spatial SDM model to explore its impact on China's industrial development. The research shows that there is a significant positive spatial auto-correlation in the spatial distribution of provincial industrial development in China. The improvement of technological innovation level in adjacent areas can promote the local region industrial development. However, the promotion of human capital in the neighborhood can only promote the development of the secondary industry among the region, and there is no spatial spillover effect on the development of the primary and tertiary industry; The adjacent areas’ absorption capacity of technology has a negative spillover effect on the primary, secondary and tertiary industry ,and it will hinder the development of the industry.