At the higher stage of economic development，employee will be more concerned about non-economic factors.This increasingly highlights the importance of human capital heterogeneity， which is reflected on individual characteristics by differences in skills，education and social status，and on regional characteristics by differences in quantity，quality and structure. Human capital investment and labor market segmentation are two sources of human capital heterogeneity. The role of human capital investment is to improve the skill levels of human capital. It will affect the overall structure and heterogeneity of human capital. Labor market segmentation will act on employee selection and human capital flows， which cannot be ignored in site selection of firms and regional industrial upgrading. In the framework of new economic geography， the heterogeneity of human capital reflects on the firm's cost function of production and the consumer's utility function， changing the spatial distribution of the industry， and leading to human capital intensity and industrial agglomeration.  Human capital heterogeneity promotes regional industrial upgrading by technological progress and regional industrial structure optimization. Human capital level determines regional technology selection， which in turn determines the path of technology progress. Human capital has threshold effect and can be used to measure the potential of regional industrial upgrading. The higher the level of human capital，the more favorable it is for independent R&D and industrial structure conversion. Human capital has different effects on the development of three industries. The higher the level of human capital，the faster the pace of the development of tertiary industry. Whether the type and structure of human capital dynamically match with industrial structure determines the effect of industrial structure optimization. Raising the level of human capital is bound to create more advanced types of human capital， bringing the growth of new industrial forms. Human capital structure optimization also helps industrial structure optimization． Current research on human capital heterogeneity，to be specific， its role on regional industrial upgrading is still in its infancy and therefore there is still much room for research. First，labor market segmentation brings in new heterogeneity of human capital. We should study how to eliminate labor market segmentation，and give full play to the role of different types of human capital on industrial upgrading. Second，different types of human capital maybe have different optimal proportions in the economy. There should be an optimal scale of investment for different types of human capital in the actual economic system. Third，the study of the roles of different types of human capital in regional industrial upgrading has significant value for the performance of regional human capital and the optimization of industrial structure and in the balance of different types of human capital investment as well. Finally，the effect of the spatial economy brought by different human capitals will have an impact on the economic development of adjacent areas. We should explore the mechanisms for inter-provincial coordination and interaction of human capital to achieve industry gradient transfer and industrial upgrading in the Chinese context of huge gaps between regions in their development and natural resources．