Abstract:Dazu has a hardware industry cluster with local characteristics of Chongqing, and enjoys the reputation of "the hardware Capital of Western China". Dazu hardware knives and scissors is characterized by forging tools, and the industry has a long history. However, compared with Yongkang, Yangjiang and other coastal areas, due to the location disadvantages of western Dazu and the lag of local knife enterprises" technology and management concepts, the industrial development is slow.With the national Chengdu-Chongqing economic circle construction to promote industrial upgrading and quality of the strategic deployment of powerful countries, for Dazu metal knife and scissors industry development brings opportunities.This paper takes the value stream movement as the entry point, focuses on the industrial fulcrum, contact, blocking point, breakpoint and blind spot in the development of Dazu hardware knife and scissors industry, analyzes the profit-driven growth of the enterprise"s main design innovation ability, the mechanism of mining in the local context and the mechanism of industrial chain organization, and constructs the growth mechanism model of Dazu hardware knife and scissors industry innovation ability.At the same time, with innovation-driven as the main goal, this paper analyzes the related subjects or resource factors that affect the smooth flow of value of the industry, establishes the decision-making model of innovation ability improvement of Dazu hardware knife scissors industrial cluster, and then proposes the path method of industrial design innovation ability improvement of Dazu hardware knife scissors industrial cluster, which can optimize the design method of hardware knife scissors products.It provides theoretical and case reference for the improvement of the innovation ability of the whole industry.