hongjizhumoustgaard(studynr.20060671).doc

Hongji Zhu Moustgaard (study nr. Mike-B, 2008 Master Thesis Supervisor: Prof. Esben Sloth Andersen  Contents 1 Introduction 4 1.1 Problem Background 4 1.2 Problem Formulation 6 2 The Literatures Review 8 2.1 Globalisation 9 2.1.1 The Concept of Globalisation 9 2.1.2 Pros or Cons? Evaluating the Impact of Globalisation 10 2.1.3 The Growing Importance of Global Value Chains (GVCs) 12 2.1.4 Globalisation as Open Gates for Regional Development 14 2.1.5 Towards a Knowledge-Based Economy: Local Networks of Innovation 15 2.2 Increasing National Competitiveness 16 2.2.1 Upgrading Comparative Advantage to Competitive Advantage 16 2.2.2 Processing Upgrading 17 2.3 The key elements of GVC 20 2.3.1 The different types of GVC 21 2.3.2 Upgrading in GVCs 23 2.4 Regional Development 26 2.4.1 A presentation of Porter’s Diamond model 27 2.4.2 Dependent and developmental linkage structures 29 2.5 Innovation 31 2.5.1 Positive Externalities 31 2.5.2 Intercultural Property Rights (IPRs) 33 2.6 Summary 34 3 Methodology 36 3.1 The selection of social paradigm 38 3.2 The process of analysis 40 3.3 The source of data 42 4 The governmental level 43 5 The Case Study 47 5.1 The city of Jin Tan: Jiang Su Province 48 5.2 The city of Ping Hu: Zhe Jiang Province 51 5.3 The town of Tao Yuan in the city of Wu Jiang: Jiang Su Province 54 5.4 Summary 55 6 The cluster level 56 6.1 The Jin Tan City 57 6.1.1 Factor conditions 58 6.1.2 Demand conditions 58 6.1.3 Related and supporting industries 59 6.1.4 Company strategy, structure, and rivalry 59 6.1.5 Chance Government Role 59 6.2 The Ping Hu City 60 6.2.1 Factor conditions 60 6.2.2 Demand conditions 62 6.2.3 Related and supporting industries 63 6.2.4 Company strategy, structure, and rivalry 64 6.2.5 The government role 64 6.2.6 Intellectual Property Rights (IPPs) 65 6.3 Tao Yuan Town 66 6.3.1 Factor conditions 66 6.3.2 Demand conditions 67 6.3.3 Related and supporting industries 67 6.3.4 Company strategy, str