Abstract: Industrial structure upgrading serves as a core engine for high-quality economic development, with technological innovation injecting new momentum into this process. Based on provincial panel data from China (2012-2021), this study constructs spatial econometric models and mediating effect models to systematically investigate the impact mechanism of technological innovation on industrial structure upgrading and its spatial effects. The findings reveal that technological innovation not only significantly drives local industrial structure upgrading but also generates positive spillover effects on neighboring regions through spatial correlation mechanisms. Regarding the mechanism, technological innovation effectively facilitates industrial structure upgrading by promoting the development of new quality productivity. Heterogeneity analysis indicates that the driving effect of technological innovation on industrial structure upgrading is most pronounced in the central region, accompanied by significant spatial spillover effects. This study systematically verifies the spatial effects between technological innovation and industrial structure upgrading, as well as the intrinsic transmission mechanism of new quality productivity, providing policy implications for the synergistic development of technological innovation and industrial structure upgrading in China.