| Industrial clusters have become an important driving power in national and regional economic development. They are very popular in developed countries and promising developing countries, such as computer industry in Silicon Valley, automobile industry in Detroit and software industrial clusters in Bangalore. From high technology industrial clusters to traditional industrial clusters, there are great successes. Meanwhile many promising industrial clusters exist in China. In this thesis, from the ecological point of view, ecology is demanding for three factors which are needed in "diamond system" for competitive advantage in an industry. The competitive advantage of industrial clusters in our country focuses on cost advantage. As industrial clusters developing, the externality becomes obvious, which is the potential danger for sustainable competitive advantage of industrial clusters. At the same time externality leads to ecology deterioration, and this is constraining industrial clusters. In this thesis, the cause of industrial cluster exteriority is explained. This paper suggests that the government should use the public policy of environmental externality to institutionally constrain industrial cluster. And Eco-economic theory should be used in clusters to innovate. Ultimately it will form new competitive advantages. In the end, I research the situation of paper industrial cluster in Zhujiang delta and try to figure out a way for sustainable paper industrial clusters. |