Abstract: Technological innovation Diffusion in industrial cluster is different from the technological innovation diffusion with many features, and the existed methods are difficult to analyze it. Based on the study of Bass model and technological diffusion innovation, this paper pointed out that there are limitations of Bass model in studying technological innovation diffusion in industrial cluster, thus expanded and established the modified Bass model of technology innovation diffusion in industrial cluster. Finally, it analyzed the simulation results .The results show that the modified Bass model is more reasonable and effective than Bass model, and the conclusion is more realistic. So it can provide theoretical and methodological support for the study of technology innovation diffusion in industrial cluster.

Key words: Industrial Cluster, Technological Innovation diffusion, Modified Bass Model, System Dynamics