An Investigation Of Regional Brand Based On Industry Clusters

As a mode of industry organizations intervenient by enterprise and market, industry clusters has promoted and will promote region development of economy. Since 70's of 20th century, some developed countries or districts such as Italy, France and American have emerged many "New Industrial District" one after the other. Some of them based in "the setting sun industries" such as the northeast Italy named The Third Italy. Some of them depend on new technologies such as Silicon Valley in American. All of them have formed their competitive advantage of nations or districts, and have promoted the development of economy in these districts greatly.In our country, industry clusters shows it's advantage to promote the development of economy in the districts relatively, and the distributing of industry clusters become more and more widely. However, with the boom of economy in these districts, there are many factors that will restrict the development in these regions before long. These factors include low technique of products, lack of famous trademark and name brand, vicious competition in price, imitation and forge other firms' products, short of person with ability, and so on.To solve these problems, a suit of fine institution is absolutely necessarily. They must be restricts the conducts of enterprises, at the same time, they will prompt each of enterprises to comply with it. The concept and theory of region brand is born out of these reasons and practice. Region brand is not only one of immaterial assets shared by all of relative enterprises but a suit of institution. As one of immaterial assets, it will benefit to firms relatively in the area, alter the anticipation of firms, then influence the tactics and conducts of enterprises. And as a suit of institution, it will restrict actions of firms and change the individual rational to suit the collectivity rational.Region brand is not a slogan. Theoretically, there are many theories to support it. These theories includes economics of scale and economics of scope, the theory of transaction cost, innovation theory, the theory of competitive advantage of nations, and so on. In practice, region brand has presented its powerful vitality such of the wine of France, fashionable dress of Milan, film of Hollywood. In our country, the shoe leather of Wenzhou is notable to each Chinese. But as a theory, region brand has not noticed by theoretician. The following thesis will systemize the theory of region brand which presents for a long time. This paper discussed the concept of region brand, analyzed enterprises' conducts and relations, argued the functions of chamber of commerce and government, and the actions they will adopt to establish the region brand. Ultimately, choose the industry of software in Bangalore and shoes in Wenzhou as cases to discuss the process of construct a region brand.