This paper builts the concept model about impact of interaction of core,chain & network on upgrading of industrial clusters. Through empirical analysis based on the survey data of typical industrial clusters in Zhejiang, the results show:(1)the outside network of cluster has more inpact on knowledge acquisition to core enterprise than internal network; the internal network of cluster has more inpact on knowledge output to core enterprise than outside network; both the knowledge acquisition and output of core enterprise have positive impact on the upgrading of industrial clusters. It shows the leading role of core enterprise in the innovation and upgrading of industrial clusters. This results further deepen the theory of industrial cluster upgrading, and provide the guidance for industrial cluster upgrading.