Research On The Relationship Between Industrial Cluster And Regional Competitive Power

The fact that industrial clusters develop successfully has proved that industrial agglomeration could promote regional economic growth effectively and improve the regional competitiveness, and on the other hand, the enhancement of regional competitiveness would further accelerate the agglomeration of related competitive industries in the region. The development of industrial clusters is able to speed up the industrial division between regions and within the region, and make them become more dependent with each other and more closely linked. The evolution of industrial agglomeration and the adjustment and expansion of enterprises in the clusters will derive many groups of edge industry, in order to form larger and more efficient industrial clusters along the industry chain or innovation chain. Therefore, to study industrial clusters theory in depth is helpful to improve our efficiency of division of labor between regions so that it can provide basis and new ideas for promoting coordinated regional development. However, the development of industrial clusters is affected by the complicated factors, such as economic, geographic, cultural social, political, historical and so forth, and these factors are related to knowledge and theory of different disciplines. Thus, the discussion of industrial clusters theory can not only get to know the basic of industrial agglomeration theory in depth, but also play a role in guiding the development of industrial clusters further. Similarly, regional competitiveness is also a complex system, involving economic and social factors as well as factors like historical and ecological environment. The discussion of regional competitiveness also needs to combine theories from different disciplines and analyze the natural roots of enhancing regional competitiveness.Starting with the practical background, the paper analyzes the current situations and existing problems of the development of industrial agglomeration and regional competitiveness in our country, and points out that in the practice of the development of industrial agglomeration, there is a deviation in the industrial clusters development concepts of the local government and the theoretical level and practical level cannot be combined effectively, Therefore, the nurture and guidance of industrial clusters is ignored, so that enterprises in the clusters cannot form an effective industrial chain or play a role that the agglomeration should do. As a result, there is little help for improving regional competitiveness. Thus, to counter the status quo of industrial clusters development, we have to trace the roots of existing problems theoretically, grasp the connotation and formation of industrial clusters, train mechanism, recognize the advantages of clusters which is brought by regional competitiveness to industrial clusters from the practice, and explore strategies for the development of clusters.Then the paper carries out the literature review on the status quo of industrial clusters and regional competitiveness. We comb and comment the related literature from several aspects like industrial clusters, regional competitiveness and the relationship between them. Studies have shown that though domestic and foreign scholars did plenty of researches about industrial agglomeration, they mainly concerned with endogenous forces of industrial clusters and paid little attention to collaboration or interaction between different countries, different regions, or different forms of industrial clusters. Foreign scholars are studying and exploring the development of resource sharing models for interregional industrial clusters further, especially the linkage and sharing of interregional high-tech industrial clusters. However, as for the study of the relationship between industrial agglomeration and regional competitiveness, there are more case studies from a practical point of view. The basic theoretical concepts are still vague, and there is a cognitive bias towards the evaluation of regional competitiveness and the research about dynamic models of industrial clusters’effects on regional competitiveness. Then in-depth theoretical and empirical studies of the deep-rooted relationship between regional competitiveness and industrial agglomeration are lacked.Therefore, the following of the paper is to analyze the mechanism of industrial agglomeration and regional competitiveness in details. The results indicate that industrial clusters promote the specialization of production level and productivity, and meanwhile accelerate the competition and cooperation within the region, enhance the innovative capacity of regional industry, improve the competitive advantage of industrial clusters, and determine the regional development potential as well as the sustainable development capacity of the region in the fierce market. In turn, the improvement of regional competitiveness helps further optimize regional agglomeration. Policy guidance by the government can further accelerate the sound development of regional agglomeration, and speed up the interaction and transfer of resources between resources in the industry. Consequently, the industry can play its regional advantages, enhance its own strategic status in the regional economic development, and play an agglomeration advantage for the regional economic development.The paper makes use of grey relational grade model and panel econometric model to make an empirical analysis of the relationship between regional industrial agglomeration and regional competitiveness form both the relevance of a single region and the impact mechanism between regions. The results from the grey relational grade model presents that at least in the sample of the regions in Liaoning Province, industrial agglomeration performs more as output agglomeration and factor accumulation, and a higher degree of correlation exits between industrial agglomeration and regional competitiveness, especially output agglomeration and factor inputs in the form of agglomeration performance, which will significantly reflected in the changes of regional competitiveness. However, in terms of Liaoning Province, the role of innovative agglomeration and technical agglomeration in the process of agglomeration still remains to be strengthened.Next, in order to compensate for the shortcomings of the static correlation analysis and the lack of a definite causal path, the paper also uses the panel econometric model and regards inter-provincial regional economic entity as objects to analyze the factors which affect regional competitiveness. We make an analysis of the effects of industrial agglomeration, technical advancement, inflow of foreign capital and ownership changes on regional competitiveness. The results also prove that industrial agglomeration has an active impact on regional competitiveness, and the agglomeration level measured by the density of investment has the most powerful effect on improving competitiveness among others. However, note that the research in the paper finds that the continued inflow of FDI does not significantly influence the improvement of regional competitiveness.Finally, on the basis of empirical analysis, the paper proposes a series of policies and recommendations, such as strengthening the planning and construction of industrial agglomeration areas, standing out regional characteristics, improving regional scientific and technological ability for innovation, paying attention to integration and upgrading of the industrial chain to avoid vicious competition of enterprises which are agglomerated, strengthening the cultural construction in gathering areas and improving the ecological environment of the cluster area to promote the economic, ecological and cultural coordinated development, accelerating enterprises in the clusters to conserve resources in order to improve the exogenous production advantages of the clusters, reinforcing the band building in cluster areas to upgrade competitive advantages of the industrial agglomeration and other practical recommendations. We would like to provide theoretical basis and policies and advices for playing industrial agglomeration advantages, offer feasible strategies for positive interaction between industrial agglomeration and regional competitiveness, and serve the sustainable development of the economy.