Abstract:Based on the influence of complex interactive network and knowledge transfer among the enterprises innovation benefits, in this paper, the PSO algorithm is used to construct and explain the theoretical model, and the individual enterprises are regarded as the particles which can perceive, process and influence the external environment. Through simulating the behavior of biology, as well as analysis of innovation behavior of individual enterprises, the macro level data that relating to the group behavior are formed, the relationship between innovation behavior of enterprises and industrial agglomeration is explored by means of simulation experiment. The simulation results show that: First of all, the siphon effect is formed in the process of industrial agglomeration, which is caused by the trend of multiple centers due to the difference of innovation behavior. Secondly, the innovation enterprise is a multi-agent whose innovation behavior choices are affected by the innovation rule set and repository. Thirdly, the knowledge spillover effects are formed by enterprise innovation, which will change the dynamic system of industrial agglomeration, and the operation consequence of this dynamic system leads to the minimum sum of the shortest paths between the central node and other nodes. Finally, industrial agglomeration will also be affected by institutional environment and competing conduct.