Industrial Clusters And Development Of Small Towns

The developing of small town is an effective choice to urbanize our country. The industry in small town should be developed and industrial cluster is a tendency of industrial development, so the relationship between industrial cluster and small town is very important. A way, on which to develop the small town, is trying to be found through the analysis about this relationship based on the findings of the former investigations. Industrial cluster is a cluster formed by many firm in same industry and many firm that relevant to them agglutinated in same place. The firm in same cluster improves its productivity through division of labor and cooperation with the other firm in the cluster. The firm has been analyzed from the scattered states to the agglutinated according to the relation of agglomeration economy and cost. The developing stages of industrial cluster have been divided into four: embryonic stage, forming stage, growing stage and stabilizing stage on the analysis. Industrial cluster is suitable to small town and can improve its industrial competition. The developing of small town should depend on the developing of industrial cluster in it. Township enterprise in same industry assembles in small town is the key approach to develop the town's industrial cluster. A result is reached that the cutting market in urban and rural is hindering the township enterprise agglutinates to small town through the analysis on the agglomeration economy and cost of township enterprise. So to perfect the market system is favorable to develop the industrial cluster in small town, is favorable to promote the urbanization.