Cooperation, innovation and the competitiveness of Chinese enterprise clusters

Abstract

One of the most interesting and remarkable phenomena currently at play in the global economy is the growing number and importance of enterprise clusters. In a wide array of industries, such clusters have enabled many firms to acquire competitive advantages that would have otherwise not been possible. Not surprisingly, many researchers and policy makers have come to regard enterprise clusters as valuable vehicles to advance the development of regional economies. This thesis extends this literature by analysing the main barriers to the sustainable development of clusters in contemporary China. In approach, it is explicitly interdisciplinary and draws upon recent research from, among other things, management theory, innovation studies, economic geography, social network analysis, regional economics, relational marketing, and institutional economics. A key finding of the thesis is that relations within clusters, in particular the relations between enterprises, are critical to both cluster development and innovative performance. It contends that the innovativeness of an enterprise cluster emanates mainly from a range of internal and relational resources that arise from the interaction of different actors. The thesis also carefully examines relationship coordination and interaction at different levels within clusters and from a range of perspectives, and then locates the inner cooperative mechanisms of clusters. Case studies are employed to shed light on the interaction, innovation and governance of clusters. International experience with cluster policy, where relevant, is also contrasted. The thesis demonstrates that integration into the global value chain and the capacity to engage in international cooperation are attributes that in some areas of China have yet to be adequately developed. Many leading enterprises in China, therefore, need to focus more attention on developing their core nodes and on the establishment of external relations that are more firmly embedded in the global industrial network. The thesis then discusses the links between the innovation of enterprise clusters, networks, institutional structure, and knowledge spillovers. It puts forward a theoretical model of an innovative enterprise cluster that is based on the coordination and cooperation of its actors. The thesis concludes by proposing a series of policy suggestion for enterprise clusters in China.