from the early stage of industrialization to the middle and late stage of industrialization, China""s industrial growth mode will experience the transformation from resource and capital driven to innovation-driven process. It has become the focus of research to take innovation as the driving force, extend the industrial value chain, and realize the rationalization and upgrading of industrial structure. Doberman model of this article is based on space, using the panel data of 272 cities in 2002-2017, to study the driving force of urban innovation and industry transformation and upgrading, draws the following conclusion: positive spillover effects of space city industry transformation, innovation drive can significantly enhance the level of city industry transformation and upgrading, and the city""s innovation drive level of the surrounding city industrial transformation and upgrading has obvious role in promoting. Further research shows that the emergence of urban agglomeration can effectively strengthen the role of urban innovation drive in promoting the industrial transformation and upgrading of surrounding cities. In this paper, the robustness test is carried out by means of substitution index, adjacency matrix substitution and grouping test, and the empirical results remain robust.