Based on such theories as ″the logic of membership″ and ″the logic of influence″, as well as ″market-support″ and ″market-complementation″, this paper discusses six basic factors in upgrading industry associations their internal roles of ″planning and development″, ″design, research and development″, ″brand innovation″, and ″marketing and sales″, and their external roles of ″exchange and cooperation″ and ″cooperation with government″. A comparative multi-case study reveals that there exist different types as far as the roles of industry associations in industrial upgrading are concerned. The paper also puts forward an interaction mechanism of the roles of industry associations in industrial upgrading: the strengths of an industry association determine its capability of utilizing internal and external resources, which are in turn affected and constrained by the industrial type and/or status as well as the government and/or other external agencies. On the other hand, its capacity of utilizing resources and the quantity of its internal and external resources determine its competence and strengths in industrial upgrading.