Study On Government's Plicies In The Evolution Of Government-led Industrial Clusters

Under the background of globalization, the industrial clusters have become the new luminescent spot and melody of the world's current economic development. Industrial clusters are not only an important part of the world economy, but also are effective regional economic organization proved by practice. In China, due to the imbalance of regional resources and economic development,underdeveloped regions are hard to form the industrial clusters development mechanism, the formation of industrial clusters must be fostered and promoted through the government's leading. Therefore, the development pattern of government-led industrial clusters provides new ideas for the region's economic development. Although the important of government-led industrial clusters have been proved by theories and practices, the understanding about government-led industrial clusters of the underdeveloped regions' government is simple, especially how should a local government do in the process of the development of government-led industrial cluster, it has been the focus of governmentes and scholars.This paper studies on government's policies within evoluton of government-led industrial clusters. Firstly, based on this research purpose, this paper analyzes theoretical basis from five different aspects, industry life cycle theory, self-reinforcement theory, Porter's Diamond Model, social network theory, evolution of self-development theory. Secondly, introduces concepts, characteristics, causes and evolution of government-led industrial cluster, and categorizes into four stages in accordance to life cycle theory, origin and emergence stage, high-growth stage, maturity stage, recessionary stage. Thirdly, starting necessity of government's policies, evaluating followed principles and noticed problems relating the government's policies establishes, according to the research ideas from Porter new competition economic theory about the influence factors and the functions of the birth and development of the industrial clusters, and decay. Inspired by the life cycle theory, the paper expounds the government's policies to different stages in the evolution of government-led industrial clusters. Finally, the paper which combines development practices of Liuyang Biomedical Park, indicates significance of government's policies and worth of government's policies research in evolution of government-led industrial clusters, and tests and verifys feasibilities of the policies.