The Role Of Government Based On Industry Cluster Study

Industrial clustering is becoming the main theme of global industrial development under the background of this highly globalized world economy in this information era. Industrial cluster is both an important phenomenon of the contemporary economic world and an effective form of regional economic organization proven by practice. As one of the valuable measures to accelerate regional economic growth, industrial cluster will have a bright future in China. Industrial cluster will be an effective way to enhance the industrial competitiveness, accelerate the growth of regional economy and to promote the industrialization and urbanization of the rural area. Industrial clustering can also act as a new strategic measure to help the development of SM enterprises and an effective solution to address the problems encountered by many large enterprises. Industrial clustering has been proven to be a new and effective theory to promote economic growth by both theory and practice, yet our understanding of this theory is far from enough. The bone of contention in argument is what role the government should play in the process of industrial clustering. A better understanding of their roles will help government of all levels to make appropriate policies to promote the development of industrial clustering. So based on the related theories and taking the different types and development phases of industrial clusters in China into account, this article tries to analysis the roles government should play in the process of industrial clustering. Studying the roles of government in the process of industrial clustering is of great importance both theoretically and practically. The study in this article should be instructive to policy makers in their decision-making. The author also hope that it will attract more attentions to industrial cluster from experts and governments of all levels, so a better environment for the formation and development of industrial clusters can be created.This article is divided in to five parts. In the Foreword part, the booming of industrial clusters globally and the significance of studying the roles of government on industrial clusters were introduced. In the second part, theories and achievements madeon industrial clustering study were discussed. In the third part, definitions, characteristics and the different groups of industrial clusters were elaborated and analyzed. The fourth part is the core of this article, detailed and thoroughly research was carried out on the role our government plays in the formation and development of industrial clusters. It also pointed out that governmental role is different when dealing the various development phases and different types of industrial clusters. Aiming at solving the problems encounters by government of all levels in industrial clustering, it pointed out that Government of all levels should consider the reality of local economy before decision making in order to fully carry out their responsibility as an effective force in promoting the development of industrial clusters. Besides, this article also studies the governmental policies on industrial cluster. In the last part, it brought forward the idea that in the process of formation and development of industrial clustering, the role of the government should just be a promoter and a go-between. Their responsibility is to bring all the participants together, supply them with a supportive infrastructure and construct a system that will be good for the sound development of industrial cluster. An effective incentive mechanism should also be created in order to eliminate the side effects of this new system.