The purpose is to explore the relationship between technological innovation and industrial development in China's pharmaceutical manufacturing industry. The method is to use the panel data of 29 provinces in China from 2009 to 2021 based on the semi-parametric spatial lag model. The results show that the industrial development of the pharmaceutical manufacturing industry has a significant negative spatial spillover effect, and the coefficient is -0.104 in the semi-parametric spatial lag model. The technological innovation of the pharmaceutical manufacturing industry has a nonlinear influence on its industrial development, and the marginal effect of the two shows a inhibitor-promotion-inhibitor-promotion-inhibition fluctuation relationship. The conclusion is that we should promote the communication and cooperation between the regions with relatively weak technological innovation and the regions with strong technological innovation. Promote domestic leading pharmaceutical enterprises to increase investment in research and development of innovative drugs in order to participate in international competition.