Industrial Cluster, Competitive Advantage And Regional Economic Development

Industrial cluster is a new developm ent of industrial organization and is a new phenomenon of district economy. Industrial clusters become one of the new topics in the investigation of economic theory. As agglomeration of industrial space, it plays an important role in regional economic development. Therefore, to analyze and search into systematically the problem of industrial clusters and region economic development is not only practical demand but also an unavoidably important subject in the economics investigation.This paper probes into how industrial clusters and competition advantage form, and analyze the mechanism by which it promotes the development of regional economy. Then giving some advice on how to develop district industrial clusters in order to accelerate regional economic development.In this paper there are five chapters. The first chapter discusses the setting and meaning of this paper and give stress to discuss new progress in industrial clusters studies. In the second chapter, based on the relevant researches home and abroad, the author defines the industrial cluster. In the third chapter, the author analyzes the competitive advantage of industrial clusters in three aspects as follows: external economy, innovation,transaction cost. In the fourth chapter, from scale effect, innovation effect, integration effect of industrial clusters, author develop into their effect on the regional economy. On the basis of studies above, the fifth chapter draws conclusion and provide some countermeasures to promote regional economic development through industrial clusters.By the theoretical and positive analysis, it arrives at such conclusions as: first, the dynamics of industrial clusters arise from competitive advantage which are mainly caused by division of labor, informal institution, innovation, and agglomeration;second, these advantages can improve regional competentability and become great impetus to the development of regional economy;third, industrial clusters can promotes regional economic development through scale effect, innovation effect, integration effect and brand effect. Fourth, formation and development of industrial clusters rely on market mechanism as well as the regulation of government. Reasonable and effective regional policies may promote harmonious interaction between industrial clusters and regional economy so as to enforce the competentability of industries and regional economy.