Research On The Effect Of Human Capital In The Industrial Cluster Upgrading

Over the past30years, the majority of manufacturing cluster in eastern China have gradually matured. It is time and necessary to consider the development direction and the next step model. Especially in2008, the financial crisis forced the coastal area to speed up the production of cluster upgrading and transformation, which brought rising costs, trade barriers, exchange rate and other issues. Based on this situation, scholars mainly put forward two ways to promote the upgrading of industrial cluster. One way is to optimize the internal network of cluster, the other is to insert into global value chain. However, both of ways are aimed to gain competitiveness through innovation. Cluster innovation depends on the level of human capital, including the quantity and quality of internal talent in cluster or enterprise. On the other hand, the development of industrial clusters is accompanied by talents gathering. Many facts and studies have proved that talents gathering has a significant role in the development of industrial cluster and regional economic. At present, the researchers’ attention has shifted to the upgrading of industrial clusters, but few scholars study on the upgrading of industrial clusters, combined with human capital theory.This paper aims to study the upgrading of production cluster from the perspective of human capital. First of all, through the literature review, this paper discusses and compares the connotation and characteristics of production cluster and innovation cluster, then analysis the connotation of human capital. We conclude that the advantage of innovation cluster is the mature innovation system and talent symbiosis system, which can creat more new knowledge. In the next section, we analysis the effect of human capital, combining regional economics, industry economics, human capital theory, innovation economics and other related theory. The effect of human capital includes agglomeration effects, interactive effect, knowledge spillover effect and innovational effect. Thirdly, we establish two evaluative index systems, which reflect upgrading industrial clusters and human capital levels, and confirm the weight of every index and the computation formula by using the Delphi technique, AHP. Moreover, according to the theory framework and the index system, the paper takes6industry clusters in Zhejiang province as an instance study. It comes to the conclusion that there has strong correlation between the upgrading of industrial clusters and the level of human capital by using Canonical correlation analysis. Finally, some policy recommendations are given to promote the upgrading of industrial clusters, from the perspective of human capital.