Abstract: The upgrading of labor quality and the embedding of knowledge reproduction cycle are the core links of urban sustainable development and the main mechanism to promote innovation. International experience shows that in the process of the post-industrialization period to the developed level, the quality of labor not only determines the interaction between service industry, consumption and public expenditure, but also determines the vital balance of welfare/efficiency in the urbanization period. This ability is fundamentally derived from the pricing power of rent and the creation of rent. Therefore, the urbanization lacking of the knowledge process will eventually lose the re-crossing opportunity and fall into the debt cycle trap of the post-industrial period.