The Relation Between Government & Market And Industrial Cluster

Industrial cluster is an inevitable trend for the development of industry. As a newly industrial organization form, industrial cluster has an enormous effect on industrial economic development, concentrates on scale economy and scope economy. With the reform and open policy being carried out more than 20 years, the industrial cluster in china is continuously coming forward, the industrial cluster mainly depend on: market self-moving formation, government programming, government & market commonly pushing. At present, the theories field has reached unanimous agreement that government and market are two main powers to the development of industrial cluster, the disagreement is that who is the main role: Government or market? So, I will take the relation between government and market in industrial cluster as the main point in this text, moreover, I will try to offer some worthy consult opinion to government of all levels in order to make most of government's policy. Because of the"market failure"in industry cluster and market risk coming from it, industry cluster needs support and leading from public policy. But excessive government interference would cause"government failure", so government intervention should be reasonable and effective. The key consists in government intervention should accord with the direction of the market power function and work in a reasonable boundary. The function of government in industry cluster is to lead it develop reasonably, to create a better environment and to prevent it turning down etc…Furthermore, different stage and different type in industry cluster, needs different kind of public policy, so the main point and the degree of government intervention should be different too.According to these points, I will give profound analysis to the condition of electronics and information industry of Fuzhou, and draw a conclusion that in order to improve the development level of the electronics and information industry cluster, we should overcome"government failure"and"market failure".