A Discussion On The Effect Of Industry Cluster To Region Economic

Due to the revolution in information and technology since middle period of 20th century, international economy has attained a strikingly rapid development, and economy of integration has become an increasingly obvious trend. While evaluating a country's position in the world and its competitive power, the indicator of economic development degree is of principal and determining importance. And the development of a nation's macroeconomic depends on that of regional economy, while the latter depends on the development of local industry and enterprises. Industry clustering, which is discussed in this thesis, means the set of enterprises in the local area that have the same or interrelated property, showing transverse relation between the same enterprises or longitudinal relation between the interrelated enterprises. Besides, industry clustering also includes the colony of such assistant establishments as governments, associations and academic institutes.While studying the competitive power of nation and region, researchers of different countries find that many nations and regions possess great competitive advantages when the same or interrelated enterprises are located closely in space. The reason lies in the following aspects that are caused by location adjacency: (a) clustering effect, which helps to reduce production cost; (b) overflowing effect of knowledge that makes enterprises learn and imitate from each other, and that consequently results in innovations of enterprises and improvements of production modes; (c) stimulation of competition and cooperation with each other, which helps enterprises enhance their products quality; (d) patronage from governments, associations and academic institutes that can be obtained when clustering of same or interrelated enterprises achieves a considerable scale, and that conduces to make local name-brand products and bring success of local economic developments.Based on study of national and regional competitive advantages, the thesisanalyses industry-clustering theory appearing in the late of 20th century and its influences to regional economy, consisting of five parts as follows:(1) Introduce research background of industry clustering, and present the significance and methods of the subject.(2) Describe relative theories of industry clustering, mainly including definition, characteristics and sorts, and analyze conditions of industry clustering formation and development in detail.(3) Study influences of industry clustering to regional economy from theoretical and illustrative aspects, and discuss on the current development situation and existing problems of industry clustering in China.(4) Illustrate with Hubei province and probe into strategies of building industry clustering, and then provide a development mode for popularizing industry clustering.(5) Give the conclusions of the thesis.In China, there appear many problems during the process of economic development, such as over decentralization of enterprises, lack of knowledge and technology, not enough information and severe pollution, which delay the continuous development progress of economy, society and ecology. Industry clustering, especially that of high-tech industries, can not only improve competitive power of national or regional enterprises, but solve some existing problems of economic development also. Therefore, this thesis may be helpful to reveal ways of attaining regional economic development in China.