Abstract: The effect of knowledge spillovers on the evolution of organizations is focused on from the perspective of absorption in knowledge spillovers. Firstly, the motivation, precondition, and structure of knowledge interaction are analyzed. And then "utility rule", "threshold value rule", and "endogenous network" of knowledge interaction are proposed. Based on these rules, a new knowledge accumulation model is constructed. The simulation indicates that the effect of knowledge spillovers on the evolution of organizations is neither convergence nor divergence. However, the results are affected by initial knowledge stock of organizations and threshold value rule of knowledge interaction. The two factors reflect the differences on learning ability and absorption capacity for different organizations. Therefore, the organizations in some clusters tend to convergence, but others tend to divergence and moreover some of them tend to convergence firstly and turn into divergence eventually. All these results are useful for understanding the controversy that whether the knowledge spillovers prompt the convergence of organizations or not.

Key words: knowledge spillover, social network model, simulation, convergence, divergence