The Function Of Government Management In Industry Clusters

Government's function in market is always a matter of concern in the theory of Government management. In the process of resources allocation, the market is usually considered as an"invisible hand"while the government a visible one. Generally, the reason for the government to function in the market economy is because of the market failure.With speeding up of the integration of the whole world economy,promoting industry clusters is one of the important paths to enhance the economic competitiveness of a region.It provids a basis and field for the Government to play its role , the theoretical foundation of government in inndustry Cluster is that government should make up for market's failures and system failure. 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. So government intervention should accord with the direction of the market power function .The function of government in industry cluster is to lead it develop reasonably, to create a better environment and to prevent it turning down from the providing of the common product,protection of market enviroment,public policy.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.This article which mainly summarizes the industrial clusters'formation and development theories,studying the function that the local govermet,including the government of Guangxi,promotes the industrial clusters for local authority to economic development and policy of district .