Study On The Competitiveness Of Pharmaceutical Industrial Clusters In Tonghua

Nowadays, clusters, which are defined as the gathering of enterprises and institutionsin certain region which are interactive and centralized, are playing an important roleon the development of the regional economic. The foreign research pioneers whohave done lots of theoretical and empirical study gradually make the clusters theory acomplete system, however, domestically speaking, the researchers in china are in fulluse of the foreign modern theory and practicing a lot of constructive work under ourcountry's circumstance, but the study on the competitiveness of the clusters is still notspecific enough, there is still much open space to study on. Thus, based on empiricalanalysis, we present the pharmaceutical industrial cluster in Tonghua, Jilin Provinceand attempt to explore the issue of competitiveness of the industrial clusters.The domestic researchers have made some progress on the theoretical study of theindustrial clusters. Since 1990s, the study focus on the theoretical exploration and theregional innovation system, along with the deeper impact on our country from theforeign cluster theory, the Chinese researchers start to study the generationmechanism, impact principle and so on in different subtitles, such as competitiveadvantage, scale economy, working specialization and tech-innovation. However,among these current studies, the works related to competitiveness of clusters are notas many as others. In the recent cluster documentary, the study focus on theinnovation network and regional economic development, we study the relationshipbetween the competitiveness of clusters and regional innovation network, policymechanism,"knowledge spillover","flexible specialization", internal resourcesintegration, the level of regional economic development,"cluster rent", FDI, adaptive behavior, technology diffusion.The pharmaceutical industry in Tonghua had a long history for more than 100 years.Throughout the process of the long history, the pharmaceutical industry in Tonghuatook full advantage of their resources and the support of the government, had wentthrough extremely winding road, and made a remarkable contribution to raising thelevel of the health of the people around the world. In early 1950s, due to certainhistorical and political reasons, the pharmaceutical industry in Tonghua was mainlytraditional craft-based, low-tech and without large-scale production, the level of thedevelopment has been in a relatively backward stage. However, since the execution ofthe reform-and-open policy, the pharmaceutical industry in Tonghua have been putonto the road of healthy development, and gradually build a more completepharmaceutical industry system and distribution network. So far, the Tonghua Cityhas become one of the famous"pharmacies valley"in china, has formed a fullyfunctional"Medical City"with pharmaceutical industry, medicine merchandise,medicine research, medical education and traditional Chinese medicine base.During the developing process of Tonghua pharmaceutical industry, clusters play animportant role. Firstly, the Tonghua pharmaceutical clusters efficiently enhance theindustrial concentration of Tonghua's pharmaceutical industry, improve theintra-structure and the industrial chain, and promote cooperation among enterprises.Secondly, the pharmaceutical industrial clusters in Tonghua accelerate the transitionof the industrial growth polar from Changchun to central cities in Jilin Province,promote the development of the country special industries, and improve theconstruction of the regional technological innovation system. Thirdly, thepharmaceutical industrial clusters give birth to the cost advantage of the enterprises inthe clusters, improve the innovative capacity of the pharmaceutical industry, andenhance the artificial capacity of the enterprises in the clusters. Using quantitative analysis methods, we evaluate the competitiveness of the wholeindustry and sub-industries in Tonghua pharmaceutical cluster. We use shift-sharemethod to analysis the competitiveness and structure character of sub-industries in thecluster, and compare the relationship of the production level between Tonghua andthe whole country quantitatively. According to the empirical results, we find that theproduction level in Tonghua is leading the whole country, especially in traditionalChinese medicine, the developing speed is much faster than the country level, playinga critical role in Tonghua pharmaceutical industry. However, the developing status ofchemical and biopharmaceutical industry is far behind the country level. In theseyears, the traditional Chinese medicine is the main developing power of the Tonghuapharmaceutical industry. The sequence of the competitiveness of Tonghuapharmaceutical industry (from high to low): traditional Chinese medicine, chemicalmedicine and biopharmaceutical medicine. What's more, we use GEM model toanalyze the factors which impacts the cluster competitiveness in Tonghuapharmaceutical industry. The results shows that the competitiveness in Tonghuaclusters is higher than the country level, for specific,"the development of Chinesemedicine"and"local resources"have play an important role, but the"high-tech","R&D"and"international competition"is the weak link, which is the improvingtarget. In addition, the Tonghua pharmaceutical enterprises is absent to realize the"strategic alliance"is the core competitiveness in clusters, they are lack ofcooperation and their communications are also not close enough, the understanding ofcooperate strategy, structure and competition still an the enterprise level. From theperspective of the competitiveness of industrial clusters, Tonghua is leading the wholecountry level, relatively speaking, the average competitiveness of enterprises is higher,and the competitiveness of the cluster environment is smaller.To this end, in order to enhance the competitiveness of the Tonghua pharmaceuticalindustry, we must propose solving measures in a more specific, more comprehensiveand more practical way. Firstly, we should emphasis on the guiding role of the government, establish a correct, scientific business concept and development ideas,put forward macro-control policies with the development characteristics of industrialclusters, and take full advantage of the pharmaceutical industry associations andgovernment regulatory functions. Secondly, we should focus culture within theleading enterprises with brand effect in the clusters, make full use of its advantages inresources, establish a standardized production systems, build a modern Chinesemedicine industrial base, improve the national demonstration project, developChinese traditional medicine farming, and carry out the construction of the integritysystem of the pharmaceutical industry cluster, and ensure the central position oftraditional Chinese medicine in Tonghua City. Thirdly, we should strengthen theconstruction of the pharmaceutical industry innovation system, understand their ownR & D direction, establish new medicine innovation system, promote institutionalinnovation, market innovation and marketing innovation, and pay more attention toimprove medical education and medical research. Fourthly, we should carry out theintelligence strategy system, form the concept of"Genius is the first strategicresource", pay more attention in talent education and establish senior talentintroduction and insurance system. Fifthly, we should improve the construction ofintermediary service organizations in the industry chain, accelerate the establishmentof the circulation system of pharmaceutical products and GAP industrial base,construct business incubator center and encourage various forms of R & Dinstitutions. Sixthly, we should make great efforts to solve the problem of inadequatecapital supply, emancipate the mind, and make full use of policy advantages, SMElending platform and the pharmaceutical business development fund. Finally, weshould improve the market system and market order step by step, coordinate themarket exploration, integrate the sales organizational resource and team building,enhance the market competitive strategy, build the"going out"platform, seriouslystudy the international marketing strategy and participate in international competition.All in all, the development of the pharmaceutical companies in Tonghua City of reflects the overall level of competitiveness of the pharmaceutical industry inTonghua City, and the whole competitiveness level of pharmaceutical industry inTonghua determines the competitiveness level of the pharmaceutical industry cluster.We should strive to enhance the competitiveness advantage of the pharmaceuticalindustry in Tonghua City, continue to consolidate the advantage, and thereby promotethe economic development of regional and even the whole country economy.