Study On Embeddedness Of Industrial Cluster-Oriented Cross-Region Group Investment

With the deepening of economic globalization and the development of Eastern China, enterprises in relatively developed nations and areas start being restricted by constraints such as scarcity of resources and increasing cost of key elements. As a result, cross-regional investment is becoming a popular way to meet the needs for avoiding regional diseconomy of scale and of earning higher yields by exploring new markets and lowering cost of labors. However, original industrial cluster may generate powerful polarization effect after getting mature, increasing the cost of shifting outside for these enterprises in the cluster, and pulling those who have strong desire to shift into a dilemma. In order to overcome the obstacle and maximize the benefit brought by interregional investment, enterprises which are located in the upper and downstream must be taken into consideration. So far, cross-regional group investment has become one of the most typical phenomena in industrial shift. Compared with traditional industrial shift, group investment has its unique advantages: First, the transfer in the form of industrial chain has saved a lot of transaction cost for massed business entities in the industrial chain; Second, group immigration is good for sharing experience, information, technology, professional personnel, and corporation system, so that the survival rate of migrate companies will be largely improved; Third, the inflow of numerous peer enterprises will have a positive impact on the local characteristic industry of the migrated place. But different forms of interregional group investment in agglomerate area are supposed to show different embeddedness, while the difference of economic and politic policy between different migrated areas will make the vitality of foreign capital power varies from each other. Moreover, local government needs to prevent being affected negatively from external industrial chain, while foreign industrial chain has to choose an appropriate area to invest. In sum, the specific research of the embeddedness of interregional group investment has its modernity, regular pattern and creativity.This thesis start with reviewing and categorizing the theory of industry cluster, the theory of interregional group investment, and the theory of embeddedness, analyzes the influential factors of industry cluster and embeddedness, and then introduce the characteristics of embeddedness on different stages of collection by discussing the evolution pattern of group embedded enterprises industry cluster structure. After the theoretic analysis, this thesis draws responses to questionnaires for three clusters in Yangzi River Triangle, Kunshan, Pinghu and Wujiang, and analyzes the gained data by using macro & micro analyze method, index system method, contrast method, and main composition method and deconstruct factors that will impact embeddedness. Based on nine principal embeddedness- influencing factors deduced from principal component analysis, this research puts forward advices for investors and investees.