Abstract:Industrial clusters are scale-decreased national innovation system. Against the background of economic globalization, industrial clusters submerged by the tidal wave of globalization, but also constantly emerged, developed and strengthened. The key is the innovative advantage held by industrial clusters. Innovative advantages of industrial clusters lie in the super learning ability among the interactive agents. Innovative advantages of industrial clusters are realized by incubating local environment, agglomeration and diffusion of knowledge and skill and catalysis of transnational companies. On this basis, policy recommendations are made on how to breed innovative advantage in industrial clusters.