| Agricultural industry cluster is the trend in the further development of agriculture, and it can promote the process of urbanization in rural areas. It is an effective way to promote the development of modern agriculture. Given that Hunan is a major agricultural province, it is important to grasp the characteristics and mode of development of Hunan Agricultural industrial clusters, reveal its mechanism of evolution, and upgrade it, which can improve its regional competitiveness and promote the agricultural economic development of Hunan. The study can promote the rural urbanization and construction of new socialist countryside, and also provide policy reference for the government to cultivate and develop the agricultural industry cluster and find ways to upgrade it.This paper analyzes the relevant theories of agricultural industry cluster and discusses the significance of its upgrade. The study begins with the formation conditions of Hunan Agricultural industry cluster, and then summarizes the characteristics of its development including its type, regional distribution and generation of economic benefits. Its four stages are studied, which are formation, growth, maturity and decline. It has been found that the cluster is in the formative years and is continuing to develop by using entropy method. Based on the qualitative evaluation of the cluster’s competitiveness through Diamond Model and the quantitative evaluation through GEM model, its GEM score is 336.39 points, which indicates that the cluster’s competitiveness level is slightly above the middle of GEM.Based on the analysis of the evaluation of its stages and competitiveness, the paper points out that it is necessary to upgrade the cluster. The paper analyzes the main factors influencing its upgrade through multivariate regression analysis on the basis of the panel data of Hunan Agricultural Economy from 2001 to 2014, and concludes that the factors are the resource, economic, technological innovation and the ecological environment. However, in theory, the factors have different impact on different types of cluster upgrade, because the clusters contain some specific agricultural products. Therefore, the paper uses canonical correlation analysis to further study the main factors affecting the six major clusters’ upgrade, which includes grain, cotton, oil, wood, fruits and vegetables, and livestock and poultry.The paper proposes two ways to upgrade Hunan Agricultural industry clusters. One is to optimize agricultural industry chain, and the other is to develop the clusters ecologically. Then the application is analyzed through the cases of Yiyang cotton industry cluster and Shimen orange industry cluster.Five strategies are suggested to promote the upgrading of Hunan industrial clusters as follows. First, government’s macro-control should play a leading role. The allocation of resources should be based on the scientific planning and reasonable distribution. More capital investment can be attracted by improving external infrastructure, social services and environmental conditions and other hardware. Second, the government should urge the clusters to participate in the market competition by virtue of the external environment, and implement export incentives to enhance the international competitiveness of agricultural products. Third, the efforts to support the leading enterprises should be strengthened, and the contact with the farmers should be closer. The brand building should be emphasized and the strategy of developing national brand should be carried out. Fourth, the new agricultural technology innovation system should be established through deepening the reform. Fifth, human capital should be emphasized. It is important to cultivate professional and technical personnel, and improve the talent cultivation system of agricultural product processing enterprises.
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