A Study On Mechanism Of Industrial Clusters

This paper aims at a basic question about how to enhance the competitive advantage of regional economy, and how to develop the regional economy under the challenges brought about by globalization. The paper is divided into six sections. The first section outlines the background and current situation related to this thesis, and the aim of the thesis. The second section introduces the definitions about cluster and analyses the characters and structure of the cluster. Based on these analyses, the paper draws a conclusion that the cluster is a kind of network by nature, which is based on the industrial connections among firms and agents in cluster. The third section paints the structure of the cluster's network, discusses the role played by each part, and anticipates the developing trend of the cluster's network. After introducing the concept of the competitive advantage and related theories, the forth section discusses the competitive advantage of the cluster by means of external economic, exchange cost and technological innovation. The fifth section describes two representative cases of clusters in China. Final section gives some conclusions and puts forward some questions needed studying later.The research on cluster is a new field either in China or outside. How to develop the regional economy by means of cluster in China strategy is also a new subject. The thesis's innovation mainly lies in the following: Considering the situation under which there are many different ideas about the definition and standards of the cluster, the thesis puts emphasis on the innovation net-work of cluster. The research on network which illustrates the structure and the mechanism related to the connection of a cluster, provides a new angle for research on cluster, avoiding the disputes on definition and identification criterion of cluster. The analysis on cluster's network reveals the significance of local network and connections for achieving the competitive advantage of a cluster. It throws new light on how to make a region of industrial agglomeration become a cluster in our country. Finally, the analysis on cluster illustrates that the persistent economicaldevelopment of a region depends on its industrial competitive milieu. At the same time, the competitive advantage isn't static but dynamic, so regional development policy should endeavor to cultivate industrial milieu. This idea sheds a new light on making regional development policy when many local governments pay attention to attract investment only by preferential conditions, while ignore cultivating industrial milieu and local network.