Inspired　by　the　basic　concepts　of　CAS,　this　paper　suggests　that　firms＇　adaptive　behaviors　are　one　of　the　driving　forces　which　push　the　evolution　of　industrial　clusters,　and　hence　proposes　Swarm　simulation　model　of　the　evolution　of　industrial　clusters　based　on　multi-agents　games.　The　impacts　and　effects　of　the　geographical　factors　are　discussed.　By　the　analysis　of　the　simulation　results,　this　paper　argues　that　geographical　proximity　is　one　the　necessary　conditions　under　which　industrial　clusters　evolve.　©　2011　IEEE.