Abstract: A conceptual model is develop to show the firms network and cluster supplements each other in improving the firm’s possibility of technological innovations. Innovation accelerators consciousness, innovation obstacle, resource restriction, organizational inflexibility and ambiguity are recognize. The present conceptual model explains how some factors in the cluster such as competitive, social interaction, cluster energy and network factors such as resource, network energy impact innovation accelerators, obstacles, succeeding the firm’s possibility of generating incremental and progress innovations. Result shows that the design and management of the firm's network must be a key strategic consideration of managers to ensure that the network continues to furnish innovation opportunities and resources and it decreases underlying innovation obstacle. Competitive and collaborative outlook of cluster and network have provided a differential roles of clusters and networks on innovation. Therefore, high competition intensity and the firm's knowledge base increases the co-located challenger’s motivation to obtain the knowledge from the central firm and high social interaction intensity may furnish them with the means to do so. Conceptual framework suggests complete comprehension with clusters and networks and explicates their limitations at the same time.