Regional Economic Development Strategy Based On Industry Cluster Study

Today's economic map of the world is dominated by colorful "economic mosaic" because of a great deal of industry clusters. Industrial agglomeration is emerging in developing countries in Asia, Latin America and Africa, while the developed countries make economic progress by industry cluster. And therefore the academia starts to analyze and study the industry cluster from the view of different subjects, such as externality theory, agglomeration economics, new industrial districts, new economic geography, competitive advantage theory, social-economic network and transaction costs theory. And many developed countries put the strategies (initiatives) of industry cluster into practice. Cluster, it seems, have become a world wide fad, a sort of academic and policy fashion item.Industrial agglomerations (or clusters) become widespread in china since they appeared gradually in Southeast China in the 1980s. And there are more and more scholars researching on industry clusters since the 1990s. The cluster ideas begin to appear in local economic development strategies. However, there is a deviation from the nature of industry cluster in many regions.Following the setting, this dissertation undertakes to make research into the theory, model, policy and application of the industry cluster based strategy of regional economic development (development strategy of industry cluster) after discussing the general theory of regional economic development strategy. It focuses on the basic principles and analyzing methods of industry cluster, and their application in development strategies by the theories and methods of economics, regional science, sociology, Science of Strategy, management science, etc. The conclusions are as follows.1. Being the main part of regional economic development strategy, the development strategy of industry cluster probes into the development level of micro business setting. It plays an important role in modern economy, and becomes a core part of the strategy of industrial, regional and innovational development.2. The Strategy Model of Industry Cluster (SMIC) is a new tool and model to analyze development strategy of industry cluster. The SMIC is an analytical model and useful analyzing toolbox. It will make the development strategy of industry cluster easier to use in underdeveloped areas.3. Modern theories of regional economic development tend to analyze micro-orientedly in globalization setting, and pursue multi-objectives basing on multi-subjects, while the traditional ones being innovated and developed.4. Industry cluster is an industrial organization between market and hierarchical organization. It is a flexible specialization production system, an industrial ecological community, and also a regional innovation networks being adapted to post-Fordism. There are advantages and risks of industry clustering.5. The essential formation and development mechanism of industry cluster is as follows: it starts in condition of specialization division of inter-firms, and begins to form as transaction costs declines. And the market scaling-up promotes the development of industry cluster, which is made to be sustainable by knowledge spillovers and innovation.6. The cluster based approach is a new method, which differs from the traditional sectoral approach. It has different levels of analysis—macro level, meso level and micro level. Cluster methodologies can be devided into qualitative and quantitative approaches.7. The cluster based policy can overcome market failure, government or policy failure and systemic failures, optimize dynamic system of cluster, and promote development setting. There are five types of cluster policy: 1) Broker policies; 2) Demand side policies; 3) Training policies; 4) Measures for special promotion of international linkages; and 5) Framework policies.8. The development strategy of industry cluster is an important means for underdeveloped areas to improve industrial and regional competitiveness.