In industrial cluster

local enterprises integrate into international division system dominated by transnational corporation through product appearance design and utility model to get low-cost advantage and low-price competition and to reap economic benefits. Integrating into international division system from low level suppresses the core technology and establishment of self-owned brand. Based on the theory of division of labor and profession and basic thoughts of Helpman

Dixit and Stigltz

we can reveal the main obstacles of core technology and self-owned brand establishment of local enterprises. Moreover

we’ll also reveal the ways of local enterprises to realize independent research and development in industrial cluster by adopting government-finance-industry-university-research collaborative innovation model. We find that the larger the technology gap is between local enterprises and transnational corporation

the more unlikely transnational corporation is to suppress the research and development of local enterprises and the more reluctant the local enterprises are to research and develop. Although local enterprises improve technology level and enlarge scale to strengthen competitiveness through learning by doing

there is uncertainty. In the short term

the establishment of self-owned brand is hard. The lower the cost of local enterprise integrating into intermediate product market is

the more products the final product market demands. The higher the capability to bargain is

the higher the efficiency is and more profits can be gained through self-owned brand. In innovation model of government-financial-industry-university-research cooperation oriented by local government

when the industry and university reap benefits equally

the best strategy is cooperation. This just conforms to Nash equilibrium. Therefore

local government should guide and support local enterprises in industrial cluster and take industrial brand and enterprise brand into consideration to realize the change from export-oriented industry to import-oriented industry. This is beneficial to the collaborative innovation of small and medium-sized enterprises cluster in Yangtze River delta.