*PhD Student of
**Associate professor, strategic Management,
***Master MBA,
In this study, the author investigates the effect of the most important factors influence technology diffusion in industrial clusters. To do so, “industrial clusters supported by small enterprise organization and industrial cities” were used as statistical population of the study. This study is based on a survey and it is a descriptive study; and the respondents are the industrial clusters development project assistant and managers. After reviewing the relevant literature, Factors affecting technology diffusion in industrial clusters were identified. In the present study, the author used a questionnaire to collect necessary data from respondents. The Cronbach's Alpha of this questionnaire was determined as 0.89 which is above 0.7 and show that the questionnaire has good reliability. To test the validity of the questionnaire, the author used content validity; and construct validity with LISREL 8.8 The results showed that the instrument has good validity. Further, the author used Exploratory Factor Analysis (EFA) for categorizing the most important factors affect technology diffusion. The results show that, four factors identified. Moreover, the author used Mean Analysis in SPSS 16.00 to determine the present performance of identified factors of technology diffusion in the statistical population. Then, with the aid of Confirmatory Factor Analysis (CFA) and taking into account the Factor Loading (FA) of each index, the author prioritize these factors and sort them in sequence
Technology, technology diffusion, industrial cluster, SMEs