Download Management & Engineering Countermeasures

Management & Engineering 14 (2014) 1838-5745
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Management & Engineering
journal homepage: www.seiofbluemountain.com
Research on the Industrial Cluster Modes and the Related
Countermeasures
Jie GAO
Jiangsu Teachers University of Technology, Changzhou 213001, P.R.China
KEYWORDS
ABSTRACT
Industrial cluster mode,
Countermeasures,
Innovation ability
Industrial cluster is the very important mean for the areas and even the countries to improve its
international competitiveness and get the advantage position in the world market. The author
analyzed the various modes of the industrial cluster and discussed some questions how to use
the different industrial cluster modes to improve the economic development of Jiangsu
Province in this article. The conclusion is that the government should take the active and
correct policies to lead the actions of the enterprises and the companies should utilize the
industrial cluster to improve their competitiveness.
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1 Introduction
Industrial cluster means that large sums of enterprises and supporting institutes that linked in production or sales are collected in one
certain field and form the strong and sustained competitive advantage. Because the industrial cluster can improve the technological
content of the products and production efficiency and encourage the new investment, it has become the very important
countermeasure for the local governments to take to improve their economic development.
After Marshall presented the theory of industrial cluster, many countries adjusted their industry planning and tried to develop the external
economy advantage and achieved the better achievements. For example, the auto car industrial cluster in Detroit, the Silicon Valley in
California and the small-ware industrial cluster in Yiwu, Zhejiang Province etc. However, in the real world, not all of the industrial
cluster can bring the huge development for the areas, it even hurts the economy. This is because whatever economic development mode
has to rely on the certain conditions. For the industrial cluster, there are lots of modes and every mode depends on the different economic
conditions and environment. Lot of the economists studied the questions and obtained the abundant theory achievements.
For example, Behrens and Thisse established the two countries trade mode and put the market size difference and organization cost
difference to one structure, and they thought that the economic integration means the coordination of the enterprise Fixed Set-up Cost.
The study result shows that under the circumstance the fixed organization cost symmetry, the designers should choose the
no-symmetry organization cost if the market excessive cluster. When the consumers prefer to the diversification preference, the
designers always prefer to the larger cluster size. Otherwise, the designers always prefer to the smaller size cluster. Wu Yin and Pu
Yongjian transferred the gap question of the area system to the welfare question of the area system with the space economic theory
and established the new geography mode, based on their theory, they studied how the excessive industrial cluster of the area
 Corresponding author.
E-mail address: [email protected]
English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD
DOI:10.5503/J.ME.2014.14.002
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influence negatively the total welfare of the areas and calculated the parameter of the optimal industrial cluster. Besides, lots of other
scholars studied the question based on the difference points of view. However, few of the scholars studied the question based on the
different industrial cluster modes, as a matter of fact, the various countries and areas take the different industrial cluster modes in the
real world, and the different modes influence the industrial cluster result very much.
Because one of the basic characteristics of the world industry organization is that the similar or related industries cluster in the same
areas and the kind of cluster becomes more and more interdependence. The industrial cluster becomes the main stream of the
economic development and it has the very important theory and realistic significant for the scholars to study industrial cluster.
However, the basic question—industrial cluster mode, we did not give the intensive study. Although some of the scholars take efforts
in this field, there is not a normative theory system in this field.
2 Introduction About the Main Industrial Cluster Modes
So called industrial cluster mode means the method to take the industrial cluster. As a matter of fact, the various countries take the
different industrial cluster modes in the real world because of the various economic conditions and environments. And the major
industrial cluster modes include:
2.1 The market-based industrial cluster mode
Most of the developed countries take the mode to finish their industrial cluster and the characteristics of the mode include (1) The
market mechanism is perfect and the growth and change of the industrial cluster rely on the interaction between the market and
industry mainly and the generation of the cluster is from bottom to top and it is produced spontaneously under the condition that the
enterprises chase the benefits of the industrial cluster; (2) The effect come from the external policy forces is indirect and subsidiary
for the growth and changeable of the industrial cluster areas; (3) The adjustment comes from the governments is often occurred after
the appearance of the industrial cluster.
In Europe countries and America, the most important motivation of industrial cluster is competition and the growth and changeable
of the industrial cluster is the market process, is the spontaneous process of the free competition. In the early of capitalism
development, most of the governments did not understand the significance of the industrial cluster and the major mode of the
industrial cluster were Marshall industrial areas, there were lots of the small and medium companies collected in these areas, and the
professional division was very detail. For example, the pottery production was collected in Staffordshire, the straw production was
collected in Phil Radford and edge tool production was collected in Sheffield in British and so forth. In Marshall’s eye, it was the
primary course for the industrial cluster to obtain the external economic scale and the effect of the government was insignificant.
With the development of capitalism, the industrial cluster areas began to emerge in large numbers, and the areas covered the
traditional labor intensive industries, capital intensive industries, knowledge intensive industries and the high-tech industries, and the
form of the industrial cluster took the evolution constantly. For example, the traditional industry area in middle and north-east of Italy,
the high-tech industry in silicon valley in the U.S., the multi-media industry area in California and the industry group of Baden
Wurttemberg in Germany etc. the reasons for emerging the industry cluster was that the companies wanted to satisfy the demand of
their own development, to obtain the professional economic advantage, human resource, the certain area social and culture advantage
and the circumstance to take innovation constantly. The governments only took some adjustment and encourage polices to prevent
the external cluster and led and promote the optimum development of the cluster areas. So under the market-based industrial cluster,
the effect of the government is limited in certain range; the growth of the industrial cluster mainly depends on the interaction of the
market and industries. Because of the strong and weak of the company competitiveness and local embedness, the differences of the
various industrial cluster areas are obvious and hierarchy is stronger.
2.2 Government support-based industrial cluster mode
The mode mainly appeared in Japan, Chinese Taiwan, Korea and India and so forth. Compare with the industrial cluster of Europe
and America, the characteristics include (1) The shorter history of the market economy, the market mechanism was not very perfect,
spontaneous action was weaker and the growth and changeable of the industrial cluster mainly depended on the governments to
complete. That is to say, the appearance of the industrial cluster was from top to bottom and it was forced by the intervening policies
or support policies come from the country or area governments; (2) Because of the lower industry starting point, it was very difficult
for the companies to achieve the special industrial cluster and breed the area innovation targets in a short time if only relied on the
condition made by the market mechanism action; (3) The governments often had the history tradition to intervene and control the
economic development and they often used the government forces to promote to set up the industrial cluster areas.
The emphasis of the government-supported mode is to support the development of the national key industries, and the governments
always pay more attention to improve the competitiveness of the key industries of the countries. For example, Tuskuba of Japan,
Hsinchu of Chinese Taiwan, Banglore of India, in the above areas, the high-tech industrial cluster led the upgrade and transfer of the
industry structure. It had been found that the mode has the very important effect for the late developed countries to catch up with and
surpass the developed countries. In the practice, we should emphasize the main role of the governments in the process of the
industrial cluster; however, we should not exclude the foundational effect and self-determined option interest in the process of the
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industrial cluster. With the expand and development of the industrial cluster areas, in the fields of human resources, technology,
capital and other aspects, compare with the private departments, the direct intervention comes from the governments will lose its
advantage and it will be very difficult for the governments to lead and dominate the optimum development of the industrial cluster.
Under the circumstance, the governments should quit gradually and transfer to take the functions under the market-based industrial
cluster mode.
2.3 Plan-based industrial cluster mode
This is the special industrial cluster based on the planned economy system, the most industrial cluster areas in former Soviet Union
and our country before reform and open are part of this mode. Under the condition of public ownership, the socialism countries can
use the center planed economic force to transfer and allocate the resources and support the important industries and compose the
special industrial cluster areas in a short time. The area production synthesis of the former Soviet Union and the three-line
construction in the 60s last century in our country are the outcome based on the industrial cluster mode. Although the appearance of
the industrial cluster fitted to the traditional system to collect the manpower, physical resources and financial resources to do the
great event, the most important result of the industrial cluster—to increase the income, reduce the cost and achieve the external
economic scale were often harmed by the political targets and it did not achieve the better result, because it did not fit to the real
situation of the economy and lead lots of conflicts ultimately.
3 Suggestions and Strategy Considerations About the Related Questions
According to the industrial cluster theory and the analysis about the industrial cluster modes, it is no doubt that the industrial cluster
will promote the economic development of the country and areas. Based on the current situation of our country, it has become the
very important question for us to solve whether or not we can use the industrial cluster to promote the adjustment and update of the
industry structure and how to use the various policies and other resource advantages to achieve the economic transition. Especially, it
is the key question what responsibility of the governments should take in the real world, the truth is simple, although the private
economy achieved the great progress in the past 35 years, the national policies and regulations are the foundation for economic
development in our country. And the enterprises have to adapt to the demand of the governments if they want to take industrial
cluster and get the benefits. In this field, I think we should consider the following questions at least.
3.1 To make the long-term development strategy for the industrial cluster
Because of the special national condition, the three modes of the industrial cluster exist in our country. Example, the industrial cluster
of small-ware production and sale in Yiwu, and the industrial cluster of high-tech products in Jiangsu are the typical Europe and
America mode, the industrial cluster around Bohai economic district is familiar to Japan, Korea and Chinese Taiwan mode and the
revive of the old north-east industry foundation take more policies of plan-based industrial cluster to achieve the goal.
Although the various industrial cluster modes all brought the large benefits for the areas and improved the international
competitiveness for our companies. It is not to say all of the industrial cluster effects are positive. As a matter of fact, we are facing
the serious problems with the development of the industrial cluster. For example, the new and high-tech industry area of Jiangsu is
the most important area for the province to make the GDP growth and is the main area for Jiangsu to export its products, but over
80% new and high-tech is controlled by the international companies and most of the domestic companies are taking OEM in the area.
The mode contains the great risk in the real world. Because it is very impossible for us to develop the economy and improve the
technology to only depend on the multinational corporations. If the international situation changes or the multinational corporations
find out the other better areas to invest or even the national policies change, they will withdraw. So it is very possible for us to loss
the strong competitive strength in a short time. It is a very important and realistic question for us to train the innovation ability of
local companies and replace the dominate position of the multinational corporations gradually in the new and high-tech industrial
cluster in Jiangsu. Another word is that we should make the long-term strategy for development of industrial cluster. Otherwise, it is
impossible for us to get the enough benefits from the industrial cluster although we can use the government forces to support.
The government and the relative companies should take the feasibility study in this field and issue the new plan to adjust the division
and industry structure to improve the role and position of the local companies in the cluster areas and rely on the principle of
informatization, technicalization and industrialization to expand the market of the local companies and train the advantaged domestic
division subject and improve the competitive strength to attract more enterprises to enter the industrial cluster areas. At the same time,
based on the background of the domestic endogeny value chain to support the domestic enterprises to share the resources and t rain
the domestic R&D ability. Based on the global resources to train the global companies to improve the position and effect of the
domestic companies in the world market and the goal is to maintain the constant development of the industrial cluster.
3.2 To take the proprietary intellectual property rights and brand establishment strategy
According to above, FDI occupies the leading position in the division net in the south of Jiangsu and the position of the domestic
enterprises is marginalized. Not only the situation makes the domestic companies loss large sums of profits, but it also will weaken
the competitive strength of the domestic companies and go against the permanent development of the area.
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Example, although about 25% notebook computers of the world are produced in the new and high-tech developing area of Suzhou,
the most of the computers are foreign brands and most of the profits belong to the multinationals. It is the very important question for
the companies of the area to face how to improve the proprietary intellectual property rights innovation ability and the brand setting
up ability. Another word is how to make the domestic companies occupy the top of the value chain. If we cannot solve the problem, I
do not think it is possible for the new and high-tech industrial cluster in south of Jiangsu continue for a long time. It is the inevitable
choice for us to train the domestic division subject and improve its position and effect if we want to perfect the division net and
promote the value chain cluster in the area.
3.3 To perfect the division structure and improve the productive services
Because unilaterally rely on the foreign market and foreign investment, the fragment of the value chain cluster did not drive the
development of the relative division link in the area. This is because the materials and market are all in foreign and situation limits
the spread of the technology and management, on the other hand, the limited expand of the value chain including foreword direction
and backward direction restricted the improvement of the domestic division subject and value chain cluster level.
Keep in this mind, I think it is very necessary for us to perfect the division structure and improve the producer services. For the
advantage companies that have the better developing prospect, physical distribution, R&D, design, marketing and financing all can
improve their competitive strength and growth speed if these industries can provide the efficient service. Thus, the effect of the
coordination and the cluster scale and effect will be expanded, the value chain bottle neck will be break through.
4 Conclusion
The new and high-tech industrial cluster made the great contribution for the development of Jiangsu and the mode offered the better
experience for other areas to set up the industrial cluster areas. But it is a question how to use the various industrial cluster modes to
make greater benefits in Jiangsu Province. I think it is the most important choice for us to improve the independent innovation ability
and brand creating ability in the process of industrial cluster.
References
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2004, 7
[2]. WU Jian. The Areal Distribution and the Economic Growth Effect of FDI. Economic Research, 2002, 4
[3]. FAN Gang. The Relative Process Report for Various Areas Marketization. Economic Research, 2010, 3
[4]. WANG Xiaolu, FAN Gang. Research on the Changeable Trend and Effect Factors of China’s Area Difference. Economic
Research, 2011, 1
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