Industrial Cluster Updating And Sustainable Development In The Early Developed Area

The relationship between industry upgrading and sustainable economic growth is not only a core issue in the field of development and growth economics, but also helps to understand how to develop economy. This paper attempts to investigate the relationship from a new perspective of comparative analysis.On the base of the experiences in developed and other emerging countries, this paper will first establish a theoretical model to study the issue of industry upgrading in the coastal areas of eastern China with a focus on Zhejiang province and then examine these important issues using related empirical approaches. The findings of the paper show that the agglomeration of production factors is beneficial to promote economic growth although geographical industry agglomeration does not have a positive effect on economic growth. In addition, we systematically analyze the situation of industry upgrading and sustainable development in developed economies and conclude some common characteristics. Furthermore, this paper proposes three means that can be used to maintain sustainable economic development.(1) interaction between local manufacturing system and global manufacturing system in the global value chain;(2) improving agglomeration competitiveness based on agglomeration structure adjustment;(3) local-specific capital agglomeration. We conclude that it is quite important to seek an interaction mechanism, to establish a joint platform between globalization and localization, to seek the mechanism of improving local manufacturing and innovation capabilities through knowledge innovation, to eliminate the structural bottle-neck of industry upgrading, to seek the mechanism of transferring innovation resources to comparative advantages of local sustainable development, to accelerate local-specific capital investment to promote industry upgrading and local economic sustainable development.