On Development Of Small-and-Medium-Sized Enterprises (SMEs) Clusters In Hubei Province

SMEs which are prominently contributive in economic growth, increasing employment and ensuring social stabilization, are the compositive constituent of economical life. And nowadays by the centralization to be clusters, SMEs get their own way to prosperity. SMEs clusters win competitive advantages from the aspects of production cost, district marketing, knowledge spillovers and innovation. To cultivate and boost up those competitive advantages and to promote sustaining growth, local governments domestic and abroad implement diversified polices. And the successful experience indicates that the action of local government may promote the development of SME clusters.On the base of these, ascending to the former research on SME cluster policies, analyzing characteristics, status in quo and existent problems of current SME clusters in Hubei Province, it is tried to conclude that the basal strategy that Hubei local government should take in order to promote the development of SME clusters. The two essential strategies which are giving prominence to institutional innovation and affording public goods will be educed from the public policy perspective.With the guide of the very strategies, several material advice on coping with the challenges and tackles that clag the development of Hubei SMEs cluster and promoting the development of SME cluster will be discussed. The advice includes: enhancing the substructure, constituting and actualizing political measures that promoting the growth of the cluster, enhancing the SMEs cluster organizational construction, quickening the alteration and upgrade in traditional industries by high-technology , implementing branded strategies and promoting regional marketing.