Behind the surface of promoting economic aggregates,does the financial agglomeration still play a role in promoting the sustained growth of high-quality economic resources—technological innovation?With the New Economic Geography Theory and Financial Regional Movement Theory, this paper makes a systematic carding on the mechanism of the financial agglomeration. Selecting the provincial panel data of China from 1998 to 2015,taking the impact of financial agglomeration on economic growth as the reference, this paper makes an empirical test and analysis on the effects of financial agglomeration on technology innovation. Results show that although the financial agglomeration has inhibiting effect on the quick increase of economic amount, it restrains technological innovation necessary for the sustainable development of economy. The financial agglomeration has uneven space distribution characteristics, which is higher in the east than in the middle and west. At the same time, the effects on financial agglomeration differ in different financial industries. The agglomerations in banking and insurance industry have positive impact on the technological innovation, while the agglomeration of securities industry has backward extrusive effect on technological innovation. After overcoming the self-selection bias, the inhibitory effect of financial agglomeration on technology innovation is reduced.