Shandong Peninsula Manufacturing Industry Cluster Development

Industrial cluster obviously featuring "cluster-like in transverse and chain-like in longitude" has been one of the most important economic phenomena of the world in the past 30 years, and important industrial policy content for enhancing regional competitiveness. International institutes like UNIDO and OCED studied and spread industrial clusters. The National Governors' Association in the US provided the Guide to Cluster Development Strategy for national governors in 2002, the Industry & Trade Ministry of UK has set up dedicated departments to be responsible for study and promotion of industrial clusters. In China, provinces like Guangdong, Zhejiang and Jiangsu are working on the plan and policy promulgation of pushing the development of industrial clusters. Shandong Peninsula also should adopt industrial clusters as regional economic development strategy, establish modern industrial clusters with core of industrial competitiveness so as to enhance international competitiveness of peninsula manufacturing base.This paper includes four parts. The first part expounds the development of industrial cluster theory and introduces the main genres engaged in industrial cluster study along the formation of industrial clusters. After discussion on characteristics, competition and cooperation, and innovation and pushing economic growth of industrial clusters, the paper analyzes the strength and competitiveness of industrial clusters and necessity of developing industrial clusters.The second part analyzes development models and experience of industrial clusters both in China and abroad. Italian industrial clusters represent those of developed countries and Indian Ban Jia Luo Er Software clusters represent successful models of developing countries, this part also enumerates cluster development practices of developed regions in China and concludes the experiences of industrial clusters used for reference.The third part examines objectively the present situation of Shandong Peninsula manufacturing clusters and points out the issues affecting restricting the development of industrial clusters.The fourth part is the core of this paper. After analyzing clusters elements of Diamond Model, the author discusses the elements influencing Shandong Peninsula...