| The success of the 2008 Olympic Games to further promote the sports development continues to increase. At the same time, China's sports goods manufacturing industry is improving, leading the sports goods manufacturing cluster a growth trend. There are many factors of the development of sports goods manufacturing industry cluster, such as the country's political system, economic system, social environment and human needs, in which political systems factor occupy a major position of the factors. This paper studies new institutional economics, and uses its method to analyze the advantage and the institutional barriers of sports goods manufacturing industry cluster, and propose to solve the system of institutional barriers and recommend innovative ways, finally promote sports goods manufacturing industry cluster's level and China's economic Levels.This article first analyzes the development of sports goods manufacturing industry cluster status, summarizes domestic and international sports goods industry cluster theory. At the same time, it uses a statistical analysis method., the results were through the data collection site of National Statistics Bureau, as well as the results of 4000 questionnaires were finishing, the using of the Eviews5.0 and EXCEL2003 Statistics Software for data processing and statistical quantitative analysis, which concluded that the consumption of sports goods in China's economic growth has played a facilitating role. Therefore correctly leading sports goods manufacturing industry cluster development will allow our economy to develop faster and better.The Paper uses an empirical analysis method to study the sports goods manufacturing industry cluster related to the cities focus on the development and their economic performance. Taking the Yangtze River Delta Region Sports Goods Manufacturing Industry cluster and Jinjiang, Fijian, Regional Industry Clusters for example. The new institutional economics analysis and game theory methods are utilized to analyze the institutional advantages and institutional barriers and get the conclusion. The advantage is that Sports goods manufacturing industry clusters have a national policy support, low transaction cost, property boundaries clear, and it can contribute to the relationship between trusted networks and it has a positive effect on organizational inertia. However, in the formal system, informal system, and implementation of mechanisms exist institutional barriers, such as national policies and systems are inadequate, local embeddedness and cluster sprawl.Finally, the thesis research based on the new institutional economics, analyzes the sports goods manufacturing industry cluster system innovation approach from the policy level. Government as a main body of national policy development and policy innovation, sports goods manufacturing industry clusters has an important role in the innovation system. Enterprises as a part of the cluster also should be around of the core of the cluster enterprises, according to the characteristics of their own to improve the management model so that the development of sports goods manufacturing industry clusters better.
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