The small and medium enterprises' cluster of developing countries based on the ability of advantage about endowments to create value, through undertaking the manufacturing from the developed countries of the enterprise. actively inset to the global value chain to create more value, we find there is a positive relationship between the location of the value chain and the value distribution power. In order to achieve the vision which small and medium-sized enterprise clusters in global value chain link to the high jump, we must have to consider designing the upgrade path. The model of value chain management, the industry category of embedded value chain cluster and the advantages of enterprise cluster would have an important impact on the upgrade path. In fact, the cultivation of competitive advantage is the cultivation of driving force about upgrading the small and medium-sized enterprises cluster realize embedded chain.