From the perspective of industrial agglomeration, the paper analyzes the factors of agglomeration, concentration measurement and agglomeration factors of producer service industry, the factors influencing the efficiency of technological innovation based on different technological innovation efficiency measurement methods were sorted and reviewed by region and sub-sector, analyze the impact mechanism of agglomeration of productive service industry on technological innovation efficiency. Literature research found, the existing research on the relationship between industrial agglomeration and technological innovation is mostly carried out from a single perspective of industrial agglomeration itself. from the perspective of industrial upgrading, future research perspectives should focus on the relationship between industrial agglomeration characteristics and manufacturing innovation. This will help to accurately analyze the current situation of agglomeration of production services in China and the ability of technological innovation. Promote the rational layout of manufacturing and improve the efficiency of innovation resource allocation.