With the global economy integration developing, the contact between Chinese economy and the global economy is becoming closer and closer. It is urgent to study how to effectively promote the development and the upgrading of industrial clusters in China under this kind of situation.Global Value Chain Theory provides us with a new perspective to re-examine the upgrading and development of industrial clusters road. At first, this paper summarizes the global value chain framework and analysis the relevance of the global value chain and industrial clusters on the basis of the general industrial clusters; Second, the paper defines the concept of industrial clusters upgrading and analysis the factors that affect upgrading of industrial clusters. By the use of global value chain theory, the paper studies industrial clusters upgrading path and concludes that the different theoretical dynamic model and governance mechanisms on the global value chain have different impact on the upgrading industrial cluster .Then after the investigation of the global IT industry and Taiwan IT industry clusters, the author focuses on the Suzhou IT industrial cluster and study mechanism and upgrading path. The author proposes corresponding upgrade strategy about how to solve the challenges it faces; Finally, the general ideas based on the escalation of global value chains are put forward to provide reference for the upgrading of the China industry cluster. |