Institutional Analysis Of Competitive Advantage Of Industrial Clusters Based On The Worldwide Supply Chain

Governing industrial clusters and supply chains are two important ways to improve the local or industrial competitive abilities. The competitive advantages of them show directly on the sustainable innovation ability ol the performers in the clusters and supply chains which is propelled by competitive mechanisms of governance. Based on the institutional analysis and taking symbol as an attachment, this paper strives to integrate a series of conceptions, such as information, knowledge, institution, culture, ect, and to assay systematically a variety of parity and disparity characters between industrial clusters and supply chains, hence a conclusion that there are striking similarities in many aspects of in the innovation industrial cluster innovation system and supply chains.The paper also holds that the individual is a basic factor ofinnovation and every piece of new idea drives from a particular brainafter all, and so increasing people's knowledge is most significant.Why various formal or informal institutions and rules are important?The answer is cut down knowledge transference costs or increaseanticipation of income (or to say, offers power to pursuit knowledge).In the first two chapters, on the hypothesis of "incomplete informationor asymmetric information" and "learning rationality"(that means,individual knowledge will improve internally), the economicsignificance of information and symbol is discussed preliminarily, amathematical model of individual knowledge expanding is applied(A=F (Ai, R, C)) , and an opinion is put forward that the loweringof information transference costs can accelerate the speed of theobtaining of individual knowledge. One way to decrease informationtransference costs is coding and symbolizing information orknowledge. Coding a variety of information which is scattered, complicated or implicit and integrating them into simple, easily recognized symbols, and then organizing them into structuralized knowledge or institutional system, will reduce romantically information transference costs, because coding enhances knowledge's integrity, systematization and structure, and transforms the way of information spread.In the third chapter, the author emphasizes the features of corporation organizational structure and evolution of scale on the base of supply chains management and expounds that corporation's organizational structure and evolution of scale are decided by the evolution of coding knowledge system. A corporation (or any other performers), as long as it takes advantages of and innovates its organizational type, can expand its heart competitiveness in its supply chains' nodes.In the forth chapter, the author demonstrates five competitive advantages of supply chains. The fifth chapter, analyzes competitive advantages of industrial clusters and its institution origins, and releases the opinion that competitiveness of industrial clusters shows itself by clusters sustainable innovation ability that is propelled by governance of competitiveness. Important conditions for development of clusters are local specialty knowledge system and low knowledge transference cost. The net relationship inserted in local culture of trust is more profound cause for cluster formation. Accumulation and accumulation forming conditions that promote each other make up a constant reinforcing evolving system abided by rule of path dependency.In the sixth chapter, the author compares industrial clusters management with supply chains management from four aspects: information transference system, competition and innovation mechanism, flexible production system, network and cultural condition. In the seventh chapter, the author puts all the studies above into globalproduction system, analyzes the power and barrier to establish supply chains, and analyzes the competitive advantages which stem from the combination of worldwide supply chains and industrial clusters. At last, the author points -out that the key to innovate and maintain regio...