Abstract
In this paper, Cellular Automaton model is applied to analyze the diffusion of innovation in industrial clusters. By comparing the simulation of two approaches of technical innovation enterprise independently research and development and Industry-University-Institute Cooperation, we find that Industry-University-Institute Cooperation is an effective way to promote the diffusion of technical innovation in industrial cluster. The result of the simulation suggests that Industry-University-Institute Cooperation is better especially when enterprises' research and development (R&D) capability is very weak or the technology is very difficult. Intensifying the external support from local government, industry associations and financial institutions has a positive effect on the diffusion of innovation in industrial clusters.
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