Taking industrial clusters as a synthesis of knowledge, considering that the knowledge system of industrial clusters has the characteristics of a complex network structure, the small world network theory can show the fundamental attributes of its complex internal structure. Based on the “small world” network model,we construct a knowledgetransfer revenue model based on the small world network of industrial cluster, combined with a simulation,and the author verifies that the quality of enterprise knowledge transformation can be significantly improved by increasing the density and communication times of enterprises in small world networks and adjusting the network similarity and scale of enterprises in the early stages of industrial cluster development.Finally it can improve the competitive advantage of cluster enterprise brought about by the knowledgetransfer innovation income.

industrial cluster； “small world”network； knowledge transfer； competitive advantage