On Competitive Advantage Of Industrial Cluster

Industrial cluster is the new development of industrialorganization and the new phenomenon of regional economicdevelopment. As a phenomenon of agglomeration, it is a problem onwhich many economists tend to make researches. Industrial cluster hasgreat competitive advantages, which plays a great role in the regionaleconomic development. This thesis is about the competitive advantageof industrial cluster and the relation of regional economic developmentand competitive advantage of industrial cluster. The thesis is dividedinto three parts: The preface, the mainly body, the conclusion.In the preface, the author proceeds from current situation of thedevelopment of industrial cluster, states the basis and meaning of theselected title, and offers certain simple explanation about the structureof the writing.The mainly body includes four major parts: part one is concept ofindustrial cluster and origin of theoretical development; part two isanalysis about competitive advantage of industrial cluster; part three isabout impact competitive advantage of industrial cluster on regionaleconomy and factors that influence the competitive advantage; partfour is defect of competitive advantage of industrial cluster in ourcountry and countermeasure of cultivating the competitive advantage.Part one: This thesis begins with the concept of industrial cluster.Industrial cluster refers to in a certain specific field (usually with aleading industry as the core), a large number of interrelated companiesand institutions and an array of linked industries form geographicconcentrations, and at last they form the phenomenon of the powerful,lasting competitive advantage. Then the author analyzes the origins ofthe theoretical development of the industrial clusters. They are: thetheory based on the classical and tradition economics; the theory basedon tradition and modern economic geography; the theory of industrialcomprehensive body under the planned economic system; the newindustrial district theory; the cluster theory based on competitivestrategy; self-organization theory. Part two: From the analysis of these theories, at first we find outthe way and characteristic of the industrial clusters'development, andthen realize the industrial cluster has many competitive advantages.The competitive advantage of industrial cluster already shows in manydeveloped countries such as American, British, etc, as well asdeveloping countries such as some places of India and China. What isthe competitive advantage of industrial cluster? This thesis divides thecompetitive advantage into economic factors and non-economicfactors. The economic factors denote those essential factors thatproduce direct economic influence on enterprise direct cost andoperation. It includes advantage of production cost, advantage ofgaining resource, advantage of regional marketing and competitiveadvantage in market, advantage of product's differentiation based itsquality, and advantage of the industrial expansion. The non-economicfactors include social embededness, learning effect, knowledgeinnovation and expansion in informal communication, regionalinnovative mechanism, and entrepreneur resource, etc. These factorsform the competitive advantage of industrial cluster. Part three: The full play of the competitive advantage of industrialcluster has very important function to the development of the regionaleconomy. The competitive advantage of industrial cluster has greatinfluence on the development of the regional economy. It is embodiedin such aspects as the large-scale production advantage of industrialcluster, advantage of promoting technological progress and spreadingin industrial cluster, advantage of accumulating and gathering, and "multiplier effect " produced by social embededness. The abovecompetitive advantages improve the development of the industrialcluster. At the same time industrial cluster can regulate the incomereallocation of the region, and give consideration to the efficiency andjustice. Since the industrial cluster has such competitive advantage,and it is so close to the development of the regional economy, weshould make a research on which factors influence competitiveadvantage of industrial cluster. Generally speaking, we should analyzeon the level which is the macroscopic --the aspect of the country, viewof medium –the aspect of the cluster and microcosmic --the aspects ofenterprises. The influencing factor of the macroscopic covers: ageneral regulation and control factor, the special regulation and controlfactor, the supportive service of the infrastructure. The factorsinvolved in the cluster aspect include the existence that trust, externalconnection, diversified products and service, ability attracting thespecialized factor to be invested, information service quality andefficiency of cluster etc. Factors involved in the enterprise aspectinclude ability to obtain technology, learning ability and innovationability, cooperative consciousness, whether there is a complementaryadvantage between enterprises, and easy degree to which newenterprises set up, etc. Part four: There are quite relations between full play of thecompetitive advantage of industrial cluster and regional economicgrowth. Where is the defect of the competitive advantage of theregional industrial cluster in our country? This thesis starts with thecurrent situation of the industrial cluster in our country. The industrialcluster of our country has grown a lot, but generally demonstrates suchphenomena as the weak competitiveness and weak innovation, etc.The lack of its competitive advantage reflects the following: Firstly,the lack of the macroscopical latitude which mainly refers to theshortage of infrastructure and relevant industry planning and economicpolicy and financial service, etc. Secondly, the lack of perspective ofindustrial clusters, including poor social embededness , badcoordination, innovation ability insufficient, shortage of humanerelation network,and the imperfect intermediary, and so on. Thirdly,the lack of enterprises includes shortage of the administrative staff,excessive competition, and it means that the joint action between...