Abstract: Knowledge as the core resources of universities has become an important factor for university’s sustainable development. By taking the local universities as the example, the characteristics of local university’s knowledge are studied, and the endogenesis process and epitaxial diffusion process about local university teachers’ knowledge diffusion are put forward. On the basis of the theory, the models of local university’s knowledge diffusion are proposed. The questionnaire survey is used to investigate the scores of the factors that influenced the knowledge internalization and externalization in the model. And by using the factor analysis, seven general effects are refined: the knowledge body, the school conditions, the ability and quality of teachers, the knowledge receiver, the knowledge value, the society effects, and the transmission path. The data analysis on road map shows that the knowledge value slightly affects the knowledge diffusion and increment, but the other six factors significant positively correlate with it.In accordance with these results, the political proposals involving the local universities construction are given in order to provide theoritical evidences for universities’ management decision and teachers’ knowledge acquisition and sharing.