Abstract: Clustered has become an effective development model for enhancing the competitiveness of SMEs. In the process of clustered development in China, there are problems such as low subject relevance, weak brand awareness,and lagging development of public platforms. The modularization of industrial organization provides new ideas for the upgrading of SME clusters, which can effectively enhance the innovation capabilities of SMEs in the cluster. The
modular upgrade of SME clusters can be achieved through the support and cultivation of module integrators, the selection and integration of module suppliers, and the operation and innovation of modular clusters.

Key words: SME, modularization of industrial organization, cluster upgrade