Comparative Study On Formation And Development Of Domestic And Foreign Industrial Clusters

In the 1970s, some old industrial districts gradually declined in the fiercecompetition of globalization, while other areas (like the Third Italy, Silicon Valley)won the regional competitive advantages. Probing the reasons, it could be found that aunique organizational form of industry— "industrial cluster" appeared in these areas.With China's entry to WTO, whether or not industrial clusters can be formed is a keyissue in winning regional competitiveness. The success of industrial clusters in the world stimulated the research interest oflots of experts. In the late 1980s, the study of industrial clusters gradually became animportant field of regional economics. The research results are abundant both homeand abroad. Most of them conducted case studies, focusing on clusters in a certainregion. Studies of this type can help us understand the phenomenon more deeply,however case studies are difficult to satisfy the practical demand of regional economicdevelopment on the formation of clusters: they fail to explain why clusters can beformed in a specific region, and what are the key elements in promoting thedevelopment of industrial clusters. Therefore, this paper focuses on the central question—why industrial clusters canappear and develop in certain regions. The main task of the paper is to explain even ifRegion A does not possess resource advantage or is not the main consuming market,clusters still appear in Region A, not in Region B. This paper is mainly empirical studies, taking comparative research as the basicmethod. By describing and analyzing the trajectories of four clusters at home andabroad, the paper is aimed at finding out the key elements in promoting the formationand development of industrial clusters. The paper holds that it is these key elements IIthat help industrial clusters form and develop in a certain region. Furthermore, inorder to give a complete answer to the question why clusters appear in Region Ainstead of Region B, the paper also makes relevant theoretical analysis, pointing outthat firms are more inclined to be clustered because firms in clusters can enjoy greatercost advantages. The paper makes a deep study on central question with theory and practicalanalysis, and originally puts forward that the six key elements—regionaltechnological basis, local government, factor conditions, service agencies, collegesand research institutes, and social and cultural atmosphere—together promote theformation of clusters in certain regions. For those regions which hope to shapeclusters, it is the priority to foster the six key elements.