Chen Jinqi and Li Jinchang pointed out in the 9thissue of Zhejiang Social Sciencesin 2022 that two major strategies for high-quality economic development are to rebuild the driving force of economic growth through innovation and to reshape the connotation of economic quality through productivity. Research found that technology agglomeration is able to significantly improve urban labor productivity, and this conclusion is still valid after a series of tests. The mechanism analysis shows that urban technology agglomeration improves labor productivity by optimizing employment structure, reducing capital mismatch and stimulating entrepreneurial vitality. The expanded analysis shows that environmental factors such as urban sprawl, technology market and intellectual property protection all play an important role in the process of technology agglomeration improving labor productivity. The research conclusions have certain reference value for the policy design of China's high-quality development strategy of which the core lies in the innovation-driven productivity improvement.