Local industry cluster in China is developing under the constantly improving of socialism market economy system and increasingly forming of industrial division system, and with the modernization of the internationalization. At present, the main advantage of Local industry cluster is low costs, in lower level of cluster development. This paper analyses the problems of development process of local industry cluster, such as the social policy, low end locking and technical locking of value chain and so on. Then proposes that realizes industrial cluster upgrade is then only road to get rid of locking state. And then it proposes that if we want to achieve local industrial cluster upgrade, we must build quality social policy system, ascend cluster innovation ability, innovation basic environment, innovation technique environment and innovation resource environment.