Abstract: This paper analyzes the knowledge spillover level of Shandong peninsula urban agglomerations from the perspective of the economic distance and knowledge capability,and calculates the economic distance of this region.Knowledge capability evaluation is reconfigured into three dimensions:S&T innovation,knowledge communication and economic environment.Entropy theory and Theil index method are adopted to make a quantitative evaluation of the comprehensive evaluation of the knowledge capability and the inequality.The study shows that the economic distance is larger,the evaluation of the knowledge capability is lower,the gap is larger,and the inequality is more obvious.Based on the results above,this paper gives some suggestions on the improvement of Shandong peninsula urban agglomerations knowledge capability.