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ABSTRACT
Industrial cluster is an inevitable trend for the development of industry. As a
newly industrial organization form, industrial cluster has an enormous effect on
industrial economic development, concentrates on scale economy and scope economy.
With the reform and open policy being carried out more than 20 years, the industrial
cluster in china is continuously coming forward, the industrial cluster mainly
depend on: market self-moving formation, government programming, government
market commonly pushing. At present, the theories field has reached unanimous
agreement that government and market are two main powers to the development of
industrial cluster, the disagreement is that who is the main role: Government or
market? So, I will take the relation between government and market in industrial
cluster as the main point in this text, moreover, I will try to offer some worthy consult
opinion to government of all levels in order to make most of government’s policy.
Because of the “market failure” in industry cluster and market risk coming from it,
industry cluster needs support and leading from public policy. But excessive
government interference would cause “government failure”, so government
intervention should be reasonable and effective. The key consists in government
intervention should accord with the direction of the market power function and work
in a reasonable boundary. The function of government in industry cluster is to lead it
develop reasonably, to create a better environment and to prevent it turning down
etc… Furthermore, different stage and different type in industry cluster, needs
different
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