Research On Industrial Cluster Competition Based On System Dynamics

With the globalization and the increasingly fierce market competition, the key to acountry or region to gain a competitive advantage is the industry’s competitiveadvantage. Industrial cluster plays an important role in improving the efficient use ofresources and boost regional economic development. As a new form of industrialorganization, industrial clusters have showed a strong competitive advantage and havean important impact on adjusting the industrial structure, promoting industrialupgrading and enhancing the comprehensive competitiveness. The issue of how toresearch competitiveness of industrial clusters and to use it to guide the development ofindustrial clusters has attracted the attention of the entrepreneurs and scholars.This paper proceeds to the analysis of industrial cluster competitiveness based onthe system dynamics. After the comparition of the way to measure the extent ofindustrial cluster and the competitiveness, it simulates the industrial cluster based on thesystem dynamics.On one hand, location quotient method is adopted to measure thedegree of the concentration of the industrial cluster. It analyzes the industrial clustercompetitiveness from market, effectiveness, and dimension in term of thecompetitivenss and establishes the model. It uses the entropy method to weigh thevariable and the mean value method to standardize the data. On the other hand, thefactors are nonlinearity and multi-variale so this paper establishes the model based onsystem dynamics. The Stata regression analysis is applied and Vensim software is uesdto simulate the model. The model verifies its effectiveness in the application to a realcase.In this study, the system dynamics has been used to establish the model andsimulate the competitiveness of the industrial cluster. The model evaluates from threeaspects: the market, competitiveness and the effectiveness; conclusion that drew from ithas been proved to be practical and the competition has been keeping increasing. Thisresearch mainly focused on the industrial competition and the factors that affect it and italso came up with some policy to improve the capacity of the industrial competition.