| Industrial clusters, as an effective approach to the development of regional economy, have attracted extensive attention from both government and academic circles. And the industrial technological innovation is one of the important subjects. However, the great majority of studies on innovation are concerned with the high technological clusters whereas little attention is paid to the traditional clusters. As a typical example of the 'Wenzhou Model', the low-pressure electrical appliances in Liushi is being faced with the trouble of inadequate capability of technological innovation. With the market competition becoming more and more fierce, to discuss the strategies which will help improve the capabilities of technological innovation is of great practical significance for the smooth development of the cluster mentioned above and for the development of the economy in Zhejiang province as well.This paper begins with a discussion of the relative theories of clusters and technological innovation, and then from an economic viewpoint, explains the real meanings of the above two terms, the dialectical relationship between them and the advantages of technological innovation based on clusters. Secondly, based on surveys and studies, the paper presents the current situation and the superiority of the low-pressure electrical appliances cluster in Liushi, Wenzhou and then analyzes the problems occurring in the course of the technological innovation of the traditional clusters and also puts forward some effective ways to improve the capabilities of technological innovation. Finally, after taking into consideration the experiences in this field abroad and at home, this paper also proposes some strategies which may help improve the capability of technological innovation of the traditional clusters (labor-intensive clusters), from the viewpoint of the government, the industrial clusters and the individual enterprises respectively.
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