Researches On The Relationship Between Embeddedness And Industrial Clusters Development

The issues of industrial clusters have attracted much attention of many scholars in the last few decades. These issues have been researched from many different aspects. Embeddedness of industrial clusters is an important aspect among them. It reflects the degree of clusters’rooting local areas. In this literature, we study the role and impact of embeddedness on the industrial clusters development. We analyzed the relationship between embeddedness and industrial clusters development. And this study analyzes several industrial clusters with the respect of embeddedness.This study defines the concept of embeddedness on the basic of previous studies. There are13basic elements of embeddedness which have been given many cases in this study. The industrial clusters also have property of openness. We find the basic elements of openness and use them together with the elements of embeddedness to analyze four kinds of industrial clusters which are high-embeddedness and high-openness cluster, high-embeddedness and low-openness cluster, low-embeddedness and high-openness cluster, low-embeddedness and high-openness cluster. This gives us opportunities to establish a complete set of researching framework to study embeddedness and openness. In the next, this study establishes a mathematical model to study the relationship between embeddedness and clusters’profit. There has been a bell shape relationship between embeddedness and clusters’profit. At development stage of clusters, the cluster performance increase with embeddedness. When cluster performance reaches the limit, it decreases with embeddedness. Then we use the framework and the conclusions to study four kinds of clusters and sum up the characteristics of advantages and disadvantages. We give corresponding development strategies of the clusters. Further more, we discuss the possible evolutionary path way of the clusters and choose some suitable ways for cluster development. This study is valuable for government to formulate relevant policies with regards to the cluster development.