Abstract: Under the new normal economic development of China, further opening foreign markets and stimulate domestic demand to form the interaction of internal and external market has became an important driving force for the coordinated development of population, economic, space and social ,and the realization of new urbanization. Based on the new economic geography, this paper builds theoretical and econometric model to make a study on the effects of the international and domestic market and space technology spillovers on urbanization of 283 ground and above cities using the method of FGLS during the year 2003~2012.The results find that, the domestic market promote the new urbanization in the middle region , while inhibiting in the eastern and western regions ( especially the western region) ; the effects of foreign markets for the new urbanization are largest in the eastern region, second in the west, while it’s negative in the central ;The effects of the technology spillover of Interregional R&D on the new urbanization is positive in the eastern region ,which is negative in the middle and west , and the most negative effect in the middle; The effects of the technology spillover of Interregional communication on the new urbanization is decreasing from east to west, and the effect which in the western region is negative. The domestic market strengthens the effect of technology spillover in the east,while weakening the technology spillover of Interregional R&D in the middle and west. The international market strengthens the effect of technology spillover of Interregional R&D in the eastern region and the effects of the technology spillover of Interregional communication in the west,while weakening the technology spillover of Interregional communication in the east.Domestic market is complementary to the international market in eastern and central regions, while domestic market is substitute for international market in the western region.