Research on mechanism of knowledge transfer dynamics based on knowledge supply chain of industry group

With the challenge of the global economy integration, Chinese factories are faced with a changeful and uncertain market environment. It is a problem needs to be urgently researched that how Chinese factories can shape industry groups with regional innovation superiority and how they can use the knowledge federation to compete and develop their predominance. Using knowledge federation, knowledge transfer, knowledge diffusion and knowledge management theories, the formation and developing mechanism of industry group is researched in this paper, knowledge network structure based on knowledge supply chain is proposed, knowledge transfer dynamics model is constructed applying dynamics method, and knowledge association intensity and knowledge transfer efficiency between federation members in industry group is also discussed.