Abstract: Through the analysis of formation mechanism about industry clusters， the concept models of the knowledge market and technical innovation with all-factor collaboration in the industry clusters are given. Taking Shanxi province’s textile industry as an example，it is proclaimed that there is a notable synergistic relationship between industry clusters’ technical innovation and the knowledge market. Namely，the key for the technical innovation of industry cluster is to establish a perfect and opening knowledge market；the target of the knowledge market development in the cluster is to improve the entire technique competitive advantage of industry cluster，then promote the district economic comprehensive ability.