Innovation network has been viewed as one of the most important means in improving technological capabilities for decades. Based on literature review, this paper presents a conceptual model on the relationships between the construction of innovation networks and the development of technological capabilities of industrial clusters in China. Applying this model we conduct a case study on reviewing history path of Zhejiang Haining leather industrial cluster. Conclusions can be drawn as follows: firstly, industrial clusters in China take on specific paradigm for technology acquisition by constructing external innovation networks; secondly, assimilation of acquired external technology resources and their translation into technological capabilities of clustered firms need support from internal innovation networks of industrial clusters; thirdly, quasi-external network, as a nexus between external and internal innovation networks of industrial clusters supported by collective learning, helps promote the effective development of technological capabilities of industrial clusters in China.