| SMEs(small and medium-sized enterprise) are not only the basic micro entity in the market economy, but also the active factors and key forces in improving market economy system. At present, the steady development of economic society is facing severe challenges from the transformation of production mode and structural transformation of the economy. It is of important realistic significance regarding how to prompt the transformation and upgrading of SMEs, so as to further promote fair competition, effective allocation of resources, technological progress and upgrading of an industrial structure. However ,the concentration of SMEs in the space , and it's derivatives brought to the development of industrial cluster , has increasingly become the essential characteristics of regional economic development and it contains many potential possibilities for regional economical development .Against the backdrop of regional economic development, how to combine the advantages brought by the industrial cluster's development ,and how to bring the transition and upgrading of individual enterprises under cluster , into full play ,is a good subject worth our study and research .Therefore ,this paper ,from the perspective of industrial cluster, make research on the issues of upgrading and transformation of SMEs under industrial cluster and put forward some solutions and suggestions for accelerating the upgrading and transition of SMEs .This thesis starts with analyzing on the related theories of economics and theories on enterprise's transformation and upgrading ;then, combining the results of investigations on SMEs' present development status ,pointing out the problems existed in SMEs . And then , through the study of foreign classic cases, it dissect the main factors which affect the upgrading and transformation of Chinese SMEs as well as the positive role the industrial cluster played to gear up the transformation and upgrading of SMEs .Finally ,based on the example of SMEs development in Ningbo area ,especially analysis on the transformation of SMEs of textile and garment industry ,it bring out some solutions and suggestions in advancing the transition and upgrading of SMEs .The paper's main conclusions are: 1, When making the transformation and upgrading of SMEs in consideration, should be in line with their actual situation and the external environment, give a full play to the advantages of industrial clusters to make a smooth transition for SMEs. 2, The main factors affecting the transformation of SMEs such as technology, innovation, brands can take advantage of industrial clusters just in the division of labor, competitive advantage, agglomeration effects, the external economic and other areas to improve, which makes SMEs' transformation is entirely feasible under the industrial cluster. 3, To effectively achieve transformation and upgrading of SMEs' success within the industrial cluster, must combing business and government efforts to continuously improve the external environment and enhance corporate capacity. |