Study On The Influence Of Industrial Agglomeration To Firm Growth Of High-tech Industry In China

Industrial agglomeration is the foundation of industrial cluster development. According to the difference of the type of industrial agglomeration and the externality forming mechanism, there have two agglomeration models-one is specialization agglomeration derived from specialization externality, one is diversification agglomeration derived from diversification externality presented by Glaser et al(1992). The scholars’opinions are divergent for specialization externality and diversification externality on economic growth, industry growth and firm growth.Theoretically, specialization and diversification externality can lead to resource sharing and knowledge spillover, but also has research show that specialization externality and diversification externality can lead to the negative impact of the firm growth, including Lemon Market, excessive competition, Effect and Path Dependence. It is still a need to pay attention to what effect or the effect level of specialization and diversification externality on firm growth.High-tech industry is the leading industry in Chinese manufacturing industry, which is one of the important developments of the high-end manufacturing in the future. As the largest and fastest growing potential industry in the high-tech industry, manufacture of medicine not only has the common characteristic of high-tech industry--high capital intensity, high technical knowledge intensity, high risk and high investment, but also has the characteristics itself--the technology of interdisciplinary range, high administrative barriers, long development period, which determines the need to improve the scope of skills and knowledge spillover and reduce the risk of R&D and product investment by some industrial organization form.It is remarkable for firm growth under the conditions of specialization and diversification externality because firm is the core of the development on industry and regional economies and the improvement on national comprehensive strength. Specialization and diversification externality are closely related to the development on regional industrial structure and the improvement on overall industry strength. It is also remarkable for a region to choose specialization economy and diversification economy or both of them. China is a large country and there has a big difference between regions on industry development level and industry structure, so study the issue of specialization and diversification in China must consider regional heterogeneity.Based on related knowledge of the industrial specialization and diversification theory and the firm growth theory, using the previous research conclusion and methods for reference, the paper firstly uses the data of listed companies considering the availability and consistency of data. It doesn’t give the conclusion of specialization and diversification having an impact on firm growth based on the research of micro enterprises. The results of the analysis found that enterprise level data cannot judge the relationship between Externality and diversification externality and enterprise growth, because there must present strong individual differences between firms, due to the differences between the registered and cross-regional operation strategy, and the data of listed companies is not stable to response the characteristics of the whole industry.So this article continues the analysis of this problem on the level of region data. The analysis result shows that specialization and diversification combined action on accelerating the development of enterprises, and diversification agglomeration is non-significant to the growth of form. Industrial agglomeration has a process from specialization agglomeration to diversification agglomeration. Specialization agglomeration can promotes the growth of new firms and the development of industries in the early industry development period. The single enterprise develops multispectral operation in pursuit of higher profits and decentralized operation risk, and then the enterprise average scale of the entire industry enlarges. This make enterprise internal production and management structure presents the diversification, which reaction at the industry level is the region’s industry presents diversification agglomeration.