Research On Chinese Conventional Industrial Cluster Upgrading Mechanism

Stepping into the 21th century, with the trend of economy globalization and China'open door policy, Chinese conventional industrial clusters have vigorously promoted China's rapid economic development based on the richness of both nature and labor resources. However, as our internal resource usage control is increasing and foreign countries are taking more policies such as suppress import to protect domestic industries, Chinese conventional industry clusters are losing their advantage of low-cost. As a result, how to adjust the development by creating and grasping the core competitiveness to achieve industrial upgrading have profoundly influenced the future development of Chinese conventional industrial clusters.This paper use both theoretical and empirical analysis to look into the upgrading mechanism of Chinese conventional industrial clusters, which mainly focuses on the labor-intense feature and possible problems that may arise during the process. There are four main parts of research content, which are as follows:Firstly, through analysis on the upgrading experiences of Italy's and Latin America's conventional industrial clusters which have similar developing process with China, we can conclude that in order to realize clusters upgrading, there are some points should be focused on: (1) improve the cluster's internal network structure; (2) entrepreneurship training; (3) improve services of industry institutions; (4) the importance of government support policies; (5) realization of establishing prestigious brand and building marketing networks; (6) the global value chain position and global market choice under the influence of global value chain management model.Secondly, analyze the upgrading mechanism of China's conventional industrial clusters from both internal & external aspects: In terms of internal-mechanism, which is about how can the enterprises gain innovative and competitive advantage base on local network structure, here we firstly refer to game theory to analyze how the enterprise carry out corporative innovation, then analyze the relationship between local network structure and the competitive advantage of enterprises ; In terms of external-mechanism, which is about how to upgrade along the global value chain to gain value globally, here we analyzed the value component, driven-power and management model of global value chain. With considering both internal and external aspects of the upgrading mechanism, we can avoid partial research result.Thirdly, this paper selected a specific subject for empirical analysis. Through the application of questionnaire, attending convention centre, turning to statistical analysis software and local industry commission for support, I got first-hand data of one of the typical Chinese conventional industry clusters, which is Chengdu furniture cluster in southwest China to do empirical analysis aims at verifying the theoretical framework of its feasibility and applicability.Fourthly, based on former theoretical and empirical analysis, this paper end up with some practical policy recommendations for improving the development of Chinese conventional industrial cluster, which are as follows: (1) government guidance is important guarantee ; (2) the crucial role of the leading enterprises; (3) local industrial association to promote the learning ability of the industry cluster; (4) utilization of high-tech and emphasis on the importance of R & D activities; (5) effective and prudent use of the theory of global value chain upgrading to avoid risk.