China's Local Governments Role In The Development Of Industrial Clusters And Policy Recommendations

It is impossible for industrial clusters to get sustainable development only depend on market and enterprises without local government's guidance and supports, which is decided by the defect from market inherent mechanism. Therefore, it is extremely necessary for local government to get involved in the field that market is ineffective. While the government malfunction can not only counterbalance market's deficiency, but also will choke cluster function of market regularity brings into play. Therefore, only if the local government role is accurately allocated, could government's guidance and supports become effective. Therefore, on the basis of analyzing the cluster's "market malfunction" and "government malfunction" in our country, this paper accurately defines the local government role, then submits some policy countermeasures here, provides a reference to a higher level development of our country's industrial clusters.The main body of this paper is divided into four parts. Part 1 is the necessity of local government getting involved in industrial clusters' developing process, expound the theoretic basis and realistic basis that supporting the local government getting involved in industrial clusters. Part 2 is the analysis of government malfunction in industrial clusters. This part expounds content in two aspects mainly, one is the situation of government malfunction in industrial clusters, the other is to point out the cause of government malfunction in industrial clusters by analysis. Part 3 is the definition of government's role in industrial clusters' developing process. This part expounds the estate of intervention degree and further the definition of local government role based on the former. Part 4 puts forward some feasible policy suggestions on the local government driving the development of industrial clusters, including the system supply to the industrial clusters; the supply of public products and services to the industrial clusters; technological innovation and ecological sustainable development of the industrial clusters.