The Formation Of Local Industrial Clusters, The Role Of Government

As a new economic structural model, "industrial cluster" model has been influencing the world in a vast and deep way. It has been becoming a hot spot in the areas such as Economic Geography, Economy, Administration, and many other areas of social science. Industrial cluster enables the enterprises within the cluster to have the advantage of scale economy and regional economy, to reduce cost, and to enhance competition and cooperation, and thus helps the enterprises to be more competitive in the industry and promotes regional economy. Industrial cluster is not only related to the elements such as material supply, market needs and supporting industries, but also related to the elements such as the government support and other opportunities.Setting its back stage in Rui'an Zhejiang, this thesis uses the industrial cluster in Rui'an as the research subject, and employs Michael Porter's theory of "diamond model" and "disorder of markets", to elaborate the role of the government along the way of the emergence and development of the industrial cluster. Under the frame work of "disorder of markets", and through the study on the role of the government and on the related elements that promote or constrain the development of the industrial cluster, this thesis tries to prove that government takes an important role in shaping and promoting the industrial cluster. The importance of the role is especially apparent and direct for local government, given the local government's geographic closeness to and its knowledge on local enterprises. If the government does exert its great influence on industrial cluster, then the logic follows that the government can and should become the drive force of industrial cluster, and that it should promote industrial cluster to transfer from the traditional from to a modern form.The first part of the thesis is literature review. It introduces the theories on industrial cluster, on the relationship between government and market, and on the "disorder of markets". The second part firstly gives a brief description on the history, current situation and the characteristics of the industrial cluster of Rui'an area; and then elaborates the important role of the government by illustrating its contribution to the formation and development of local industrial cluster. In the third part, the thesis analyzes the advantages and disadvantages of the industrial cluster in Rui'an area through the data on questionnaires, visits and other related sources. Based on above data and analysis, the thesis illustrates a comprehensive picture of the difficulties that the development of industrial cluster in Rui'an faces, and further suggests a possible way in which the local government can take part in the development of industrial cluster.