A Study Of China's Local Industrial Cluster Developing Embedded In Global Value Chain

Industrial clusters are one of the significant ways to promote local industrial competence. Study on local industrial clusters focuses on inter-firm linkages and interaction within an identical industry. Vis-a-vis, the approach of global value chains and the governance poses emphasis on cross-border linkages and interdependence among different industries located in discrete places, which provides a novel view prospect for the upgrading of local industrial clusters in developing countries.It is unlikely to understand the interregional dynamic industrial restructuring if regional economic advantages are seen only from internal factors. However, if local industrial clusters are placed in global economic system, a new picture of regional industrial developments will be in sight. Therefore the global linkages are equally important to regional economic development as local industrial linkages. Nevertheless, the literature on local industrial clusters, mainly focusing on the local sources of competitiveness coming from intra-cluster vertical and horizontal relationships generating collective efficiency, often neglects the increasing importance of external linkages. Hence this paper will be focused on analyzing the upgrading of China's local industrial clusters by stressing global linkages as well as local linkages.With the further development of globalization, regional industrial cluster, featured with geographic conglomeration, is gradually embedding into the global value chain. In view of globalization, regional industrial cluster is a response as well as a result of globalization. Clustered region has brought about vigorous vitality in regional production efficiency, generating new business and promoting innovation in production line, which is a active supplement to the international division of industry in the process of globalization. In addition, a clustered region in globalization is a non-stopping dynamic and open system unique local system better than a unique local system. For on thing, different regions of cluster will melt into the production net of globalization; for another, knowledge and information from outside is a significant source of innovation and learning for the local place. Thus different industry cluster, although apparently characterized with localization, is an important part of world economy and keeps a close connection with economic globalization. Therefore, economic globalization and industry cluster is in opposition and also in integration, depending on and promoting each other.Regional industry cluster is a powerful form to promoting competitiveness of local industry, focusing on connection and in interaction between industry of the same range; the analysis of global value chain and its administration mode emphasize the inter relations between industries in the international division, which provide a new view for promotion of industry cluster for developing countries.The theory of global value chain is a new system of theory on industry covering from macro...