Abstract:Silicon Valley, as the most innovative high-tech industrial cluster in the United States, has fostered an innovative ecosystem that is conducive to the coordinated development of startup firms and technology services. The operation mechanism of the innovation ecosystem of Silicon Valley are as follows: The learning competition mechanism in which large firms and startups exist symbiotically, forms a enterprises cluster that can achieve a good balance between “open innovation” and “protection of intellectual property rights”. The multi-directional interactive communication mechanism among university, industry and government, the cooperation mechanism based on the regional science and technology alliance, the operation mechanism of the technology service network with the small enterprise as the core and the Federal government"s legal normative guidance mechanism. The Silicon Valley Innovation Ecosystem has important implications for the construction of China"s urban agglomerations and regional industrial cluster innovation ecosystems.