The Regional Economic Development Of Northern Jiangsu Based On Industrial Clusters

Regional economic imbalance has seriously restricted the overall economic and social development of Jiangsu Province. Whether "Two Firsts" strategic goal of Jiangsu Province can be achieved lies in North Jiangsu. Economic gap between North Jiangsu and South Jiangsu, in the final analysis, is the gap between levels of industrial development. The implementation of industrial cluster strategy is conducive to enhancing the competitiveness of industries in North Jiangsu, optimizing industrial structure, and promoting the sustainable development of regional economic. This article attempts to analyze the correlation between the construction of industrial clusters and regional economic development. Based on this, we draw some lessons from the strategy of regional development in North Jiangsu and take examples from the development of industrial clusters in developed and less developed regions. Combined with the basis of industrialization and the status of industrial clusters development in North Jiangsu, the paper demonstrates the necessity and possibility of promoting regional economic development based on industrial clusters in North Jiangsu, and then explores the development model and the corresponding countermeasures of industrial clusters which suit for North Jiangsu, so that we can provide a theoretical reference for the development of industrial clusters in North Jiangsu and other less developed regions. This paper learned much from Marx's division and cooperation theory, location theory, the gradient transfer theory, the new industrial district theory, the new competition economic theory, theory of comparative advantage and other related theories. By using the qualitative and quantitative analysis, normative research and empirical research, comparative method, etc., the paper progressively completed the analysis process.After analyzing the development of industrial clusters in developed and less-developed regions such as the third Italy, Ltin-America, Indian, Zhejiang Province and Guangdong Province, many inspirations can be drawn from which, for example: developing labour intensive industry depending on conventional industries; promoting the minor enterprises positively; full playing the role of government; cultivating the regional cultural context promoting industrial clusters; promoting the building of guild and agency.According to the actual fact of North Jiangsu, on the conditions of large open strategy, the implementation of industrial-led growth strategy is critical for the implementation of catch-up strategy in North Jiangsu. Industrialization has made some achievements in North Jiangsu, but there are many obstacles to further enhance the level of industrialization. It shows concretely as follows:the serious offside and absence of governments'function; insufficient investment of science and technology, education; low quality of human capital; low level urbanization provides limited impetus for industrialization; local minor enterprises lack of enough capital to develop; native venture capital investment is deficient. Over the years, the development strategy of North Jiangsu changed frequently and appeared many limitations, therefore it failed to achieve the desired results of increasing the industrialization level of North Jiangsu. The industrial clusters and the strategies of development in North Jiangsu are supplementary to each other. In North Jiangsu, the development of industrial clusters is conducive to the formation of dominant industries and beneficial to promote the urbanization process. Also it can enhance regional innovation capabilities and the competitiveness of regional economy.Most of industrial clusters concentrated in South Jiangsu, but in recent years, there are some larger scale and stronger competitive industrial clusters formed in North Jiangsu. Some industrial clusters based on resources, conventional industries and specialty industries have become the highlight of industrial development in North Jiangsu. However, the development of industrial clusters in North Jiangsu is still relatively backward on the whole. The main existent problems are:too small scale and very small quantity of industrial clusters; weak competitiveness of the dependent dominant or pillar industries, and weak innovation ability of industrial clusters;unreasonable industry planning and arrangement, duplication of similar projects between areas; backward construction of industrial park and development zone, and only gathering of enterprises instead of gathering of industries in many areas;laggard constrction of specialized market, and low degree of intermediary service socialization, the required external support mechanism forms difficultly or can not play a role in the development of clusters.According to the view of Alfred Weber etc., geographic factor is the impetus of developing industrial cluster. Location factors, such as special natural resource, geographic position, capital superiority, labor cost, play a very important role in the forming of clusters. This paper argues that there are some favorable conditions for the great development of industrial clusters in North Jiangsu.From the internal point of view, excellent location, resources, abundant human capital, the growing dominant or pillar industries provide the necessary foundations. Firstly, North Jiangsu has abounding resources and superior geographic position. It can exploit the position superiority to develop the resource-integrated industrial clusters and farm and sideline products specialty clusters. Secondly, the level of human capital stock and flux are decisive factors in the forming of industrial cluster, and they are key elements of industrial cluster upgrading. More abundant human resources provide a condition for the industrial clusters to gain the support of colleges and universities'research and development strength. Thirdly, the five cities in North Jiangsu have initially formed dominant or pillar industries with unique features. And they have developed a series of leading enterprises with bigger scale and competitiveness. It has lay industrial foundation and enterprise core for industrial cluster development of various regions.From the external point of view, government support, the transference of industries from the developed areas and FDI provided a powerful impetus to the development of industrial clusters. In the fierce market competition, if there is no effective government assistance, the produce of clusters would be very difficult and may even die early. Especially in underdeveloped areas, the formation of clusters needs more government policy support. The role of local government is reflected as follows:positively creating an innovation environment; promoting the formation and innovation of cluster networks; effectively regulating the behavior of local markets; exploiting the potential innovative resources within the clusters. In recent years, Jiangsu Province government successively adopted a series of policies and measures to support the development of industry clusters in North Jiangsu. These policies are important guarantee and political advantages for the development of industrial clusters in North Jiangsu. Under the promotion of government and the guidance of market, North Jiangsu attracted a large amount of capital from developed areas in recent years. By undertaking industries transfer, North Jiangsu can transplant industrial chain from developed regions and draw on development model of industrial clusters. When large enterprise groups entered an area, they can attract supporting companies or industries to follow-up, "copy" industrial cluster model of areas where foreign investment perched. At the same time, FDI can promote exchanges and cooperation between the industrial clusters and external, accelerate transfer and the spillover of technology within industrial clusters. The learning effect caused by which can spread to local enterprises. Experience from South Jiangsu, Guangdong and other areas shows, support of FDI is an important driving force to promote the development of foreign-oriented industrial clusters. North Jiangsu has made some achievements in attracting FDI. We can use the late-development advantage to attract large foreign enterprises and large foreign projects appropriately. On the one hand, relying on leading enterprises to develop foreign-oriented industrial clusters, on the other hand, to arranged with FDI, actively promote collaboration between the local private enterprises and foreign-funded enterprises, and enhance the "embeddedness" of industrial clusters.This paper argues that it is necessary to optimize the industrial structure of North Jiangsu, and to promote the development of resource-driven industrial clusters, large enterprise-based industrial clusters and industrial-transfer-based industrial clusters. According to the foundation of industrial development and requirements of future industrial distribution, the government firstly should scientifically plan the development of industrial clusters, enhance the competitiveness of regional leading industry, and promote the development of industrial clusters relying on leading industries. Furthermore, the government must enhance education, training, research and development, and build public service platform which is needed for the development of industrial clusters. Finally, it should create the necessary atmosphere for the development of industrial clusters, and actively promote the development of SMEs in the region.This paper argues that under the guidance of scientific concept of development, and taking the market as the orientation, it is necessary to optimize the industrial structure of North Jiangsu, and to promote the development of resource-driven industrial clusters, large enterprise-based industrial clusters and industrial-transfer-based industrial clusters. Porter believes that the government is the engine system to create factors of production. Government-led industrial development in North Jiangsu is still one of the main external driver facts to the development of industrial clusters in a short time. But in the long run, North Jiangsu governments must complete the market mechanisms and nurture environment which can benefit the development of private economy. Government's traditional role is to create and enhance the important agents of production. Thus, according to the foundation of industrial development and requirements of future industrial distribution, the government firstly should scientifically plan the development of industrial clusters, enhance the competitiveness of regional leading industry, and promote the development of industrial clusters relying on leading industries. Furthermore, the government must enhance education, training, research and development, and build public service platform which is needed for the development of industrial clusters. Finally, it should create the necessary atmosphere for the development of industrial clusters, and actively promote the development of SMEs in the region. Of course, local governments should also recognize the limitations of government intervention in the economy and accurately locate their functions and avoid "absence" and "offside".