Value Chain Theory And Chinese Industry Clusters Upgrading

Value chain theory, which has two perspectives of global value chain and cluster value chain, is the emerging theory of research on economic organizations and the allocation of resources. In the background of economic globalization, there are vertical separation and horizontal integration on value chain. The industrial clusters across the globe are also using this opportunity to embed in a different posture global value chain, sharing the benefits of globalization. From the perspective of institutional economics, industry cluster is an economic organization of intermediary form between markets and enterprises, better than market and enterprise in some cases. It is composed by a group of enterprises and support institutions, which are geographically close to each other. They are in a specific field, and are linked similarly and complementarily.Based on the various advantages of different regions, there are more and more emerging industry clusters all over the country. After the formation of industrial clusters, its development is very important. Especially in the wave of economic globalization, the local industrial clusters are facing pressure from the global escalation. In this paper, on the basis of theory of the global value chain and cluster value chain, with the global economy, the global value chain as well as the status quo of Chinese industrial structure, we analyzed the necessity and feasibility of Chinese industry clusters embedding in the global value chain, and thought that Chinese industrial clusters should take "the low road" to embed in the global value chain. By re-examining the cluster value chain and the value chain network capital, this paper deepened the latent upgrading, and originally proposed the vertical upgrading and the horizontal upgrading, promoting cluster upgrading research. The vertical upgrading is from arm's-length market cluster to quasi-hierarchy cluster, constructing vertical cluster network capital. Vertical upgrading is essentially cluster governance process, enhancing the level association among cluster enterprises, and has scope economy effect. The horizontal upgrading is from quasi-hierarchy cluster to network cluster, constructing horizontal-vertical cluster network capital. Horizontal upgrading is essentially cluster governance upgrading process, enhancing the network association among cluster enterprises, and has larger scope economy and scale economy. This paper explored the concrete paths of the two upgrading. The paths of vertical upgrading are the introduction of the core businesses, isolation low processing businesses, promoting technological innovation, setting up new serving institutions, and so on. The paths of horizontal upgrading are building a harmonious social relation, building fluency information dissemination mechanisms, setting up non-market institutions, and so on. Overall introduction of Shandong Province clusters and detailed analysis of important clusters have explored the path of vertical upgrading and horizontal upgrading.