Industrial Cluster And Regional Economic Development

Since the next half of the 20th century, the development of both economic globalization and the industrial cluster phenomenon with local characteristics is having a deep impact on international economy. In those areas that successfully and quickly grow up all around the world, circling a leading industry, a large number of enterprises that closely connected with each other agglomerate in a certain area with relevant supporting organizations, which makes the area have a better position in the fierce and continuous international competition. Therefore, the industrial cluster in certain areas, as a new development of industrial organizations and a new phenomenon of the regional economic development, is the agglomeration of industries in a certain area, which has attracted people's extensive concern, and become a theme of research for economists. Professor Porter of Harvard University thinks, the competition advantage of a country or an area stems from the advantage industry. And advantageous competition of advantage industry stems from industrial cluster (Porter, 1998). As the global economy's competition has been fierce day by day, the enterprises need to establish close partnership. Through the partnership, promoting the transmission of information and creative thinking, which make enterprises obtain the competition advantage. Industrial cluster, to both enterprises and its products unique advantage of competition advantage, is no longer external factors of traditional natural endowment etc, but brings economic benefit and drive a country or an area ahead by interaction cooperation and communication, which can give play to economy scale and economy of agglomeration scope. The industrial cluster, in the regional economic development practice at home and abroad of a group of strategy, has already been proved that it is a kind of effective strategic mode. Advanced development industry clusters are usually founded in developed areas all over the world. Industrial cluster of our country had come into being before we could notice. They play so important role to our country's area economy development that we are unable to ignore stage of them. More and more facts make us realize that the industrial cluster in which a group of some small and medium-sized enterprises are gathered can obtain the great competition. We can say, at present, the development of each regional economy our country and their participation in the internationalize competition can't do without the development of industrial cluster. The remarkable economy contribution of industrial cluster changes our traditional industry view, and also determines a regional economic development is not confined to a specific leading industry or pillar industry again, but should be expanded to the aspect of industrial cluster. It is an optimum choice for regional economic development that industrial cluster of a kind of forms as economic development. The development of regional economy plays a driving role to industrial cluster in that region. Industrial cluster and regional economic development is a kind of interaction relation. Interaction of this piece one benign interactive course, it is a course of mutual promotion, strengthening and developing by each other. Namely the industrial cluster promotes the development of regional economy and forms the competition advantage. Development of regional economy, at the same time, also helps industrial cluster, offering good condition for industrial cluster's further development and growth. Formation and development of industrial cluster rely on market mechanism as well as the regulation of the government,which is a so-called "visible hand". It is rational for effective regional policy to promote industrial cluster and regional economic development benign interaction, which thus improves the competitiveness of the industry and regional economy. Therefore we can develop and cultivate local industrial cluster, by making policy and strategy for the development of industrial cluster, accomplishing regional economy even the whole national economy fast development in a healthy way. This text tries hard to use multi-course theories, such as industrial cluster, regional economics, urban economics, industry's economics, etc. synthetically, adopts the method that theory combine with practice, studying industrial cluster motive through systematic research regional economic development together, to announce the inner link of industrial cluster and regional economic development, thus we can deepen the theoretical research of this question. By doing so, we can offer local government theoretical direction and analytical frame according to industrial cluster and regional economy development, in order to promote the development of regional economy. The theories of domestic and international industrial cluster are stated in the first part of this paper, which is exhaustive to introduce industrial cluster theory research's development, and summs up the concepts, characteristics, classifications of industrial cluster and the way it has formed. Using economic principles to analyse the inherent mechanism of industrial cluster and economic effect and propose the negative effects that industrial cluster brings. Secondly, it has expounded the fact that the relations of industrial cluster with regional economic development, thinking that the development of regional economic is a primary conditions of industrial cluster development. Industrial cluster is one form of regional economic development, and the effects of industrial cluster on regional economic development are analysed, too. Finally, it is analysed that the industrial cluster of our country's development state and the characters at present. It points out the problems of industrial cluster development by analyzing some areas cases in our country, and explains that the industrial cluster's important meanings to regional economic development of our country for new period, by the way, it gives the proposes pointedly to industrial cluster development strategies and recommendations.