This paper introduced attenuation variable of distance coefficient between duopoly firms in industry cluster based on the A-J model, analyzed the distance between technological innovation firms affect to the level of   technological innovation investment and the output market using three stages gambling model, analyzed the firms in gambling how to decide as same as the condition and effect of deciding. This paper provides the basis for the technological cooperation innovation of firms in industry cluster to making decision. The gambling first stage is choose the innovation cooperation partner in industry cluster to decide the distance between firms; The second stage is decision the technological innovation investment level; The third stage is the firms compete each other in Cournot competition market and decide the output.