| The eminent competitive advantage of industry clusters in economy attracts researchers' attention from economics and management at home and abroad. The big economic success requires us to explain it in theory. Through reviews of the studies before, we may realize that they analyzed the success from an angle of institutions (externalities, agglomeration, transaction cost, innovation environments) ignoring the inner-relations.The dissertation is on the economy mechanisms of industry clusters outspreading the market mechanisms by tools of game theory, institution evolvement and comparative institutions analyses. The conclusion is that the advantages come from an efficient and complementary institution arrangement. The arrangement is the dynamic equilibrium resulted from the three players who are independent economic bodies, government and civilian organization. It makes complement to the market malfunction and government failure and outspreads the market mechanisms. The success of industry clusters just resulted from it.The structure is as follows. The preamble is the first chapter included environments, significance in theory and practice, methods and innovations, structures. The second chapter is to make a review on the studies of industry clusters before. The third chapter is on the embodiment of the outspread. This section describes the important mechanisms of civilian organization accrued inside the industry clusters. The argumentation is stated in this section. The main four aspects of embodiment and examples are pointed here. The fourth chapter analyses the economic mechanisms definitely. The analyses focus the four main aspects of market malfunction and government failure. The view of efficient and complementary institutions stands out. The last chapter is about epilogue, inspirations and prospects. |