Based on the analysis of the internal mechanism of sustainable innovation in the virtual transformation of industrial cluster enterprises, SEM is applied to discuss the relationship between cross-border search, value co-creation and continuous innovation from the perspective of cross-border search and value co-creation theory, and the virtualization transformation of industrial cluster enterprises in Suzhou Industrial Zone is taken as the sample. The results show that the cross-border search in the virtual transformation of industrial clusters has a positive impact on continuous innovation performance, and the moderating effects of different value creation methods on cross-border search and continuous innovation performance are different. Among them, value co-creation of correlative enterprises plays a full mediating role in the relationship between transboundary search of the technological knowledge, transboundary search of the market knowledge, and continuous innovation performance, and value co-creation of correlative customers plays a full mediating role in the relationship between transboundary search of the market knowledge and continuous innovation performance. Therefore, in order to improve continuous innovation performance, cluster enterprises in the process of virtual transformation of industrial clusters should pay attention to the development and matching of cross-border search and value creation.