Study On Development And Reinforcement Of Competency Of China Clusters

Cluster is an intermediate organization between enterprises and outside market, and the emergence of which brought along a new unit of competition, that is, to expand competition among individual enterprises to the cluster level to reshape the competition of market. When interrelated enterprises are clustered in a certain area, their economic behavior will showcase in two aspects of enterprise and cluster. Therefore, the competencies of enterprises are strongly related to the two sides while the competitions occur more among clusters than among enterprises. All enterprise members participate the competition through the united competency of clusters instead of by any individual enterprise. Therefore, the study on the development andimprovement of cluster competencies is the key point to enhance the capabilities of any individual enterprise.Clusters initiated from scattered small enterprises spontaneously in most cases. Due to the limitation on expansion of scale, investment and technology, enterprises strengthened their cooperation on related aspects. Some of those interrelated enterprises came into shape of modern clusters. Compared with single enterprise, cluster has multiple advantages, which make more and more countries and districts to encourage clusters by forms of industrial zone, development zone and etc. Currently, some premature clusters have come into shape in China but a lot of work on the cooperation of enterprises and development of industrial zones need to be done in the near future.In fact, many world-famous companies started their businesses from clusters by the comparably active economy in those regions. Clusters are now widely scattered in US, Europe, South America and Asia. All successful experiences proved that clusters with strong competencies could compete effectively with big companies and keep the stability of macro economy. Clusters in China are developing rapidly while their progresses are much hindered by many dysfunctions such as specialization, internal & external cooperation and entrepreneurs' personalities. Therefore, it is very important to encourage the cooperation among enterprises and to reinforce the Clustering Effect so as to keep our local clusters in the efficient development track. The emergence and development of clusters, and their operation mechanisms are to be studied in this article to invent an effective development model for the reference of our local clusters.In the first part of this article, I mainly introduce some basic definitions and theories of Clusters to found a base for the following discussion and analysis. In the second part a model on the development of competencies of clusters is introduced, with adetailed analysis on the value chain of individual enterprise and the value system ofwhole clusters. Current development of local clusters and a case study of Guanyinshan Town in Nantong city are analyzed in part three, and successful experiences of clusters worldwide are showcased to discover our strengths and weaknesses in the next-step development. Based on the above-mentioned study, a conclusion on the build-up and reinforcement of competencies of local clusters is drawn to refer to future development.The creativities of this article are shown in the following points: (1) Invent a three-dimension model on the development of cluster competencies through the analysis of cluster value systems; (2) Analyze some substantial problems in the development of local clusters through the case of Guanyinshan town; (3) Generalize the characteristics of successful experiences on cluster development to work out the possible solutions for local clusters' future development; (4) Introduce some.new methods to facilitate local clusters' development to enhance the efficiency of their operation.Hopefully this article can bring some reference for the development of local clusters.