Abstract: The real value of innovation rests with it's diffusion on industrial networks. The factors which affect the diffusion of innovation on industrial networks are the topology of the network and rules of innovation diffusion. Industrial network is a complex network with the scale-free and small world properties. The structure of industrial network has different impact on the threshold, length of path, status, and participationof innovation diffusion. Based on the cost which enterprise spends on technology innovating, and attitude toward the risk of technology innovation, the "technology innovation avalanche"diffusing model of industrial network is proposed, and further analysis is made.

Key words: industrial network, complex network, innovation, diffusion, avalanche