Local Industry Clusters' Transition And Upgrading

As China's reform and opening up, Zhejiang and other coastal developed areas have an effective way to make economic growth which is to take "massive economy" as the distinctive characteristics of a large number of local industrial clusters formation and rapid development. However, recently, this model of economic development began to face a severe test. With the scarcity of resources, the rise of labor costs, the barriers between international trading and the demand to transit to green industry, this "old" model hits its "bottleneck", and is no longer able to boost the economic growth. It is time to upgrade local industrial clusters. In this context, to explore and study how to achieve transformation and upgrade of industrial clusters becomes extremely important.Global value chain integrates the various links of the value of the production companies which have a comparative advantage, in order to have a systematic competitiveness. In the global value chain system, the status of each enterprise is different from its own country-specific competitive advantage and these comparative advantages are engaged in the production of the corresponding part of product value. Only certain areas can create higher added value. These high-value-added sectors are a strategic link in the value chain. Who controls the part of these strategies will come to grasp the entire value chain, have a control of the industry, make it the governance, the leaders of the value chain or in the value chain to occupy the high-end status. Otherwise, the value chain system has become a subordinate who were leaders. As the global value chain competitive with the system mainly by the value chain leader in high-end enterprise use, therefore, the status of the global value chain in which the differences reflect the size of the foreign enterprises and competitive strength of the strength. At present, Chinese enterprises in global value chains, on the whole system is in a subordinate, was dominated by the status of global value chains can not effectively use the system as a competitive, competitiveness, seriously deficient. As a result, study how to add value along the path of global value chains to enhance the value of local industrial clusters and to increase the competitiveness of enterprises has become an urgent problem, which is the purpose of this study.This study uses the global value chain governance theory, theoretical summary and combing the different chain of governance models to upgrade local industrial clusters, to extract the global value chain governance based on the theory of local industrial clusters to upgrade the theoretical framework of analysis. Based on this framework, Haining leather industrial cluster analysis of clusters embedded in global value chains, power mode and at different stages of development of the governance model. Based on processing and manufacturing characters, Haining leather industrial cluster is classified as a "buyer-driven" global value chains. Different value chain model determines different way to upgrade local industrial clusters. Quasi-level type, level, value chain governance model to help upgrade and product upgrading processes; network-type model of governance is conducive to functional upgrading; market-oriented model of governance it help feature upgrades, it should be depending on the cluster size. Haining leather industrial cluster on the escalation of research should be based on local characteristics and development status from the cluster and global value chains within the two-pronged approach to two levels, ranging from enterprises and governments to propose specific measures to upgrade. It is only through time, the accumulation of a mixing of all kinds of favorable external conditions for the formation of development suited to their own endogenous factors that are the source of the core competitiveness of the cluster, thus achieving the upgrade can be sustained. The upgrading of local industrial clusters according to local situations, take the local characteristics of the road, upgrade, and there is no fixed pattern.