Abstract: Modern Economy is characterized and supported by Industrial cluster, which plays a vital role in the whole economy. Therefore, in order to further advance the optimization and upgrading of industrial structure and accelerate economic development mode change,an important breakthrough and main direction is to promote the optimization and upgrading of industrial clusters. In terms of the medium and small-sized enterprises, if industry elements are adjusted reasonably, and favorable market factors created by the government are adopted to the full,the development of the industrial clusters will be accelerated in a short period, which in turn makes the industry efficiency as well as competitive power of the medium and small-sized enterprises improve significantly and remarkably.