About Industrial Clusters
Nowadays, market competition is gradually changing from comptetition between enterprises to competition between value chains and even competition between industrial clusters. The development of industrial clusters is a social process changing from production of Ford type to specialized production.
State owned enterprises cooperate with foreign companies, together to lower costs and improve market reaction to become world wide competitive.
Industrial Clusters in Tianjin
Factors that have triggered the development Tianjin to become an Industrial Cluster:
1.Development of state owned enterprises as foundation.
2.Large number of existent trained skilled industrial technical workers. 3.Created manufacturing industry culture.
4.Created industrial atmosphere and institutional environment.
Measures that need to be taken to move Tianjin to a better world wide position:
1.Government should promote research and cooperation with universities and create research institutions.
2.Improve infrastructure to attract laborforce and international management. 3.Reform state owned companies, and law frame.
4.Strive toward a "Made in China" name.
Overview of the 4 main important Industrial Clusters:
Remarks:-High LQ, (LQ =Location Quote, comparative advantage criteria of a certain industry in a certain region)
-Mostly foreign owned. (USA, Korea, Japan Taiwan)
-Very good cooperation between companies along the supply chain.
Major Players:Motorola (63% of sales).
Main Problems:-Mostly foreign companies leads to funds dependency (90% foreign, national average 73%. -State owned companies have small scale, insufficient investment, slow speed development, weak competitive power, brain drain and lack inner motivation force. -R&D interaction between companies, universities and research institutes are not present.