Abstract:The process of hi-tech industry cluster policies affecting the development of cluster is a dynamic complex system. By using system analysis method, the cluster policies system is divided into five subsystems. Based on the cause-and-effectSrelationSchart, the influence path of the key policy elements of each subsystem to cluster development are revealed, and system dynamics model is constructed. Then this paper takes the cluster policies system in Shanghai as example. The key policy elements of each subsystem affecting the economic output and scientific research output of cluster are respectively discussed by system simulation. Results show that eight policies have obvious effects to promote the cluster development, which are the policy of promoting risk investment, enhancing industry-university-researchScooperation, promoting regional financial institutions lending, perfecting the support of infrastructure, preferential tax, protecting intellectual property rights, attracting talents and promoting FDI. So the government should pay attention to these policies in the process of formulation and implementation, which would have strategic significance to the development of high-tech industry cluster in Shanghai.