Abstract
Base on the two-way perspective of cluster inside and outside, this paper divides knowledge spillovers in industrial cluster into local knowledge spillovers and external knowledge spillovers according to the scope of knowledge spillovers source distribution. On the premise of the heterogeneity of firms, it analyses the special role of focal firms in these two kinds of knowledge spillovers. Based on Local knowledge Spillovers - Global Pipeline model and SECI model, this paper proposes the way of knowledge spillovers in industrial cluster based on focal firm, that is focal firms absorbing external knowledge (including Internalization and socialization), socialization of the focal firms new created tacit knowledge, externalization of cluster new created dominant knowledge, combination of cluster new created dominant knowledge and the Internalization of cluster dominant knowledge. Through these five knowledge transfer processes, the knowledge of the cluster would spiral.
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