Abstract:     Technical innovation accelerates the emergence of industrial innovation cluster, and the technical standards work as a bridge and activator. Network effect, compatibility, intellectual property, and consumer expectation determine that the technology based economic will be widely and profoundly affected by the technical standards. The high-tech industries form division innovation with the help of cooperative R&D and the motive force of technical standards. The establishment of technical standards not only breaks through at the technical level, but also promotes industrial development and realization of the efficiency diffusion. In the process of diffusion, owners of standards form their own technical innovation track and other corporations realize simulative innovation, at the end, the phenomenon of innovation clusters emerges. This not only promotes themselves development in high-tech industry but also strengths the alteration in the traditional industry, and consequently upgrades the industrial structure at the same time.  

Key words: technical standard, division innovation, innovation cluster, technology spillover, industrial structure upgrade