| Since the18th of National Congress of the Communist Party of China,the central party committee make strategic adjustment to the new urbanization, namely "strengthen the small and medium-sized cities and small towns development, public service, to absorb employment, population agglomeration function", and put forward "release the limits of small town and city comprehensively, open limit of medium cities orderly, decide the conditions of settle of big cities reasonably, control the urban population scale strictly", which suggests that small towns in our country play a crucial role in the process of urbanization. Absorbing rural surplus labor need industry development that can promote the development of small town economy and solving the employment problem, therefore, the small town industry cluster become an important driving force..However, since the majority of China small town industrial clusters-based, long-term low-cost labor-intensive processing industries in the low end of the global industrial chain, industry cluster in many areas is still in the early stages, the changes in the international situation, as well as the rising prices of our land and raw materials and labor, the industry cluster of small towns in China gradually lose its international competitiveness, facing the grim situation in the transformation and upgrading.Urban and rural overall development guide the city capital, technology, human resources, management and other factors of production to flow to rural areas, efforts to form the urban and rural open interoperability, complementary mutual promotion, product and factor market environment for the free flow of property rights, is the main way to promote urban and rural industrial structure optimization and new initiatives to promote the transformation and upgrading of small-town industrial clusters. At present, China has entered the middle stage of industrialization, has come to the stage of development of the industry to support agriculture in general, although can not solve farmers’ low income through massive subsidies as developed countries, but our country in general have the nurturing agriculture to support the strength of the rural areas.First of all, the article induced the development background, course, distribution and characteristics of industry clusters of small towns in our country in detail, and found out the current problem.Secondly, analyzed the status quo of China’s urban and rural. The results show that the overall level of development of urban and rural planning has been significantly improved from the beginning of2007. It was found that the eastern region of the highest, followed by the central, Western lowest of urban and rural development by horizontally compared in31provinces (city, area). Most ranked in the forefront of the country’s area is located in the Beijing-Tianjin and Tang, Pearl River Delta and Yangtze River delta. And the more densely populated region, industrial cluster, urban and rural overall development level is higher, which indicates that the urban and rural overall development and industrial cluster has a certain correlation.Thirdly, to further confirm that there is close relation between urban and rural overall development and industry cluster in the small town. The article got that unilateral relationship exist in the number of industry clusters and the level of urban-rural development by Granger causality test, that is, urban and rural development can promote the level of small towns the improvement of industry cluster. And analysis the external effect of urban-rural overall development to industry clusters in small towns.Forthly, because of the link motivation, production factors, the trend of industry of the urban and rural areas, which promote the upgrading of industrial clusters in small towns, so form the space layout of industrial clusters of small towns from the angle of urban and rural overall development, and put forward three kinds of path of Cluster Upgrading:the urban and rural industrial specialization, urban-rural gradient transfer of industries and urban and rural industrial cooperation.Fifthly, used model analysis and process design to build a decision method of upgrading industrial clusters of small towns, and combined with the computer programming, design the software development project to make the small town industrial decision more operational.Finally, formulated feasible strategy, promoting urban and rural and industrial clusters of small towns development. Provided the guidance suggestion for the development of industry cluster in small towns. |