Comparative Study On The Transformation And Upgrading Of Industrial Cluster In The East And West Coast Of The Pearl River

The development of industrial cluster mode in the Pearl River delta can bedivided into the eastern and the western parts. Eastern coast mode mainly accepts thetransfer of some multinational companies and is highly dependent on them, thus,losing the autonomy with low embeddedness. In recent years, along with theformation of the common development pattern between Hong Kong and Shenzhen,the industrial structure adjustment speeds up in Shenzhen and Dong Guan. Besides,Huizhou is also the trend of the modern industry system with "sustained growth ofelectronic industry, the rapid growth of leisure tourism industry". Individual along theeast coast of the industrial cluster is trying to upgrade, having been part of the newand high technology industries. Private economy and the domestic market are in highpriorities in western industrial cluster development model. A lot of the first generationentrepreneurs are local farmers, and they promoted the sustained growth of the localeconomy in the development process of the industrial cluster. The formation of thecluster mainly relies on local resources endowment, the old industrial base, thedomestic market, entrepreneurs’ spirit of innovation, and system of dependencebetween enterprises. The internal relations between the longitudinal and transverseform the sustained development of the innovation ability.Along with the development of industrial clusters, the negative effects of clustersgradually appear. And rising land prices, labor shortages, rising raw material prices,energy shortage, extensive growth, resource waste and environmental pollutionproblems restrict the sustainable development of the cluster, and lack of innovation inthe1990s gradually affect the further development of the cluster with theinternational market competition and the rise of emerging markets become serious.Therefore, the transformation and upgrading of industry cluster become more andmore necessary in the sustainable development of the Pearl River delta.Concentration of industrial cluster of the small and medium-sized enterprises in thewestern Pearl River bank has entered the phase of upgrading development since theearly21st century. The global financial crisis brings greater effects on the contractionof external demand of the market, gradually speeding up the pace of transformationand upgrading. At present, the government vigorously promotes the integration inGuangdong province through regional economic integration, promoting the modern industry system construction and transforming traditional industries, to speed up thepace of transformation and upgrading, promote the competitiveness of the region.Based on different industry cluster formation mechanisms and development models,the transformation and upgrading in the eastern and western parts also show differentpaths. The article is going on the comparative study and deals with the formation,characteristics and the transformation and upgrading of industrial cluster path whenfacing the challenges and opportunities in the process of the transformation ofdevelopment.