The relationship between SMEs clustering and technology innovation formed one important part of the SMEs strategy to growth. The increased interest in clusters has the positive influence on firms in net-work within geographical boundaries and knowledge diffusion. There is a strong tie connected cluster firms on technology innovation and firms' expansion. Regional clustered firms have enough capabilities to trans-form local interaction, information, technology and valuable knowledge to improve their performance. This paper demonstrates and analyzes Chinese SMEs cluster effects and their technology innovation situation in a geographical cluster. Based on the characteristics of SMEs in China, at the end of the paper will propose some suggestions on thegrowth strategy for Chinese SMEs in the perspective of its cluster and technology innovation.
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