Chinese industrial clusters

Abstract

Clusters are an increasingly common form of business cooperation, which gives
affiliated entities tremendous growth opportunities and shared experience. The countries of the
Asia-Pacific region are becoming an increasingly popular place to locate clusters, which stems
from various factors. The Asian region is an attractive region for foreign direct investment –
so many new businesses are created there. Also there exists a strong tradition of industry, so
clusters are formed naturally as a consequence of the concentration of specialised industries in
the area. The clusters located in China are an example of a stronger industry concentration than
average industrial clusters. Many regions in China are concerned only with specific products
(e.g., textiles), which are sold on national and international markets. They are extremely well-
-organised clusters-cities, where a large number of small and medium enterprises operate,
which by acting together are more likely to achieve a high level of competitiveness.

Full text

Innovation Sources
of Economies in Eastern Asia
PRACE NAUKOWE
Uniwersytetu Ekonomicznego we Wrocławiu
RESEARCH PAPERS
of Wrocław University of Economics
256
edited by
Bogusława Skulska
Anna H. Jankowiak
Publishing House of Wrocław University of Economics
Wrocław 2012

Reviewers:KazimierzStarzyk,BeataStępień,MaciejSzymczak,
MaciejWalkowski,KatarzynaŻukrowska
Copy-editing:MarcinOrszulak
Layout:BarbaraŁopusiewicz
Proof-reading:JoannaŚwirska-Korłub
Typesetting:AdamDębski
Coverdesign:BeataDębska
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ISSN 1899-3192
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Contents
Introduction ..................................................................................................... 9
Part 1. International trade as a factor of innovation in Asian economies
Jerzy Dudziński, Jarosław Narękiewicz, Iwona Wasiak: Pricemovements
intheinternationaltradeandAsiandevelopingcountries’exports...........  13
Guenter Heiduk: Is innovation-based competitiveness in trade crisis-
resistant?ThecaseofChina.......................................................................  23
Bartosz Michalski: Technological intensity of the international trade.
Thecaseofthesecond-tierAsianTigers....................................................  36
Paweł Pasierbiak: TechnologicalintensityofJapanesemerchandisetrade....  47
Ewa Mińska-Struzik: Learningbyexportingas asourceofinnovationin
Asiancompanies......................................................................................... 59
Part 2. Foreign direct investment as a source of innovation in Asian economies
Magdalena Kinga Stawicka: Economic and Technological Development
Zones(ETDZ)asaplaceofFDIlocationinChina....................................  75
Maciej Żmuda: The determinants of Chinese outward foreign direct
investmenttodevelopingcountries............................................................  86
Tadeusz Sporek: Foreign direct investment in Nepal. Strategy and
promotion.................................................................................................... 98
Aleksandra Kuźmińska-Haberla: Promotionofforeigndirectinvestment.
ExamplesfromtheAsia-Pacificregion......................................................  109
Part 3. Innovativeness of network in Eastern Asia
Sebastian Bobowski, Marcin Haberla: Networkedclusters inthe context
ofknowledge-seekingstrategyofinternationalbusiness...........................  121
Jerzy Grabowiecki: Zaibatsuconglomeratesas organisationalinnovations
atthetimeofthemodernisationofJapan’seconomy.................................  132
Małgorzata Wachowska: Theimportance oftheJapanese keiretsu groups
forknowledgespillover..............................................................................  144
Małgorzata Dolińska: Network-centricinnovations.ThecaseofChina.......  153
Anna H. Jankowiak: Chineseindustrialclusters...........................................  164

6 Contents
Karolina Łopacińska: Cultural differences in the context of managing
aninternationalcorporationwithaSwedishandChinesecapital.............  174
Part 4. Innovativeness of Asian financial markets
Magdalena Broszkiewicz: Innovationsin corporate governancesystem as
anecessaryimprovementsofcapitalmarketinJapan................................  187
Jacek Pera: Moder n trends in fi nancial innovations on the Asian market.
Anattemptofassessment...........................................................................  198
Artur Klimek: Sovereignwealthfundsintheglobaleconomy......................  208
Paweł Folfas: Dubai–anemergingandinnovativeoffshorefinancialcentre  217
Streszczenia
Jerzy Dudziński, Jarosław Narękiewicz, Iwona Wasiak: Ruchcenwhand-
lumiędzynarodowymaeksportazjatyckichkrajówrozwijającychsię..... 22
Guenter Heiduk: Czykonkurencyjnośćwhandluopartanainnowacjachjest
odpornanakryzys?PrzykładChin............................................................ 35
Bartosz Michalski: Technologicznaintensywnośćhandlumiędzynarodowe-
go.Przypadektygrysówazjatyckichdrugiejgeneracji.............................. 46
Paweł Pasierbiak: Intensywnośćtechnologicznajapońskiegohandlutowa-
rowego......................................................................................................... 58
Ewa Mińska-Struzik: Uczenie się przez eksport jako źródło innowacji
wprzedsiębiorstwachazjatyckich.............................................................. 71
Magdalena Kinga Stawicka: Ekonomiczneitechnologicznestrefyrozwoju
jako miejsce lokowania bezpośrednich inwestycji zagranicznych w
Chinach....................................................................................................... 85
Maciej Żmuda: Motywy bezpośrednich inwestycji zagranicznych Chin
wkrajachrozwijającychsię........................................................................ 97
Tadeusz Sporek: ZagraniczneinwestycjebezpośredniewNepalu.Strategiai
promocja.....................................................................................................  108
Aleksandra Kuźmińska-Haberla: Promocja bezpośrednich inwestycji za-
granicznych.RozwiązaniazkrajówregionuAzjiiPacyfiku....................  118
Sebastian Bobowski, Marcin Haberla: Usieciowioneklastrywkontekście
strategiiknowledge-seekingbiznesumiędzynarodowego.........................  131
Jerzy Grabowiecki: Konglomeratyzaibatsujako innowacjeorganizacyjne
okresumodernizacjigospodarkiJaponii....................................................  143
Małgorzata Wachowska: Znaczeniejapońskichgrupkeiretsudla rozprze-
strzenianiasięwiedzy................................................................................. 152
Małgorzata Dolińska: InnowacjepowstającewsiecinaprzykładzieChin... 163

Contents 7
Anna H. Jankowiak: Chińskieklastryprzemysłowe..................................... 173
Karolina Łopacińska: Różnicekulturowewkontekściezarządzaniafirmą
wielonarodowązkapitałemszwedzkimichińskim................................... 184
Magdalena Broszkiewicz: Innowacjewsystemieładukorporacyjnegojako
konieczneudoskonaleniefunkcjonowaniarynkukapitałowegowJaponii 197
Jacek Pera: Współczesnetendencjew zakresieinnowacjifinansowych na
rynkuazjatyckim.Próbaoceny.................................................................. 207
Artur Klimek: Rola państwowych funduszy majątkowych w gospodarce
światowej.................................................................................................... 216
Paweł Folfas: Dubaj–wschodząceiinnowacyjnecentrumfinansowe.......... 226


  2012
InnovationSourcesofEconomiesinEasternAsia ISSN1899-3192

WrocławUniversityofEconomics

Clustersareanincreasinglycommonformofbusinesscooperation,whichgives
affiliatedentitiestremendousgrowthopportunitiesandsharedexperience.Thecountriesofthe
Asia-Pacificregionarebecominganincreasinglypopularplacetolocateclusters,whichstems
fromvariousfactors.TheAsianregionisanattractiveregionforforeigndirectinvestment–
somanynewbusinessesarecreatedthere.Alsothereexistsastrongtraditionofindustry,so
clustersareformednaturallyasaconsequenceoftheconcentrationofspecialisedindustriesin
thearea.TheclusterslocatedinChinaareanexampleofastrongerindustryconcentrationthan
averageindustrialclusters.ManyregionsinChinaareconcernedonlywithspecificproducts
(e.g.,textiles),whicharesoldonnationalandinternationalmarkets.Theyareextremelywell-
-organisedclusters-cities,where a largenumber ofsmalland medium enterprisesoperate,
whichbyactingtogetheraremorelikelytoachieveahighlevelofcompetitiveness.
Chineseclusters,industrialclusters,development.
ThecountriesoftheAsia-Pacificregionarebecominganincreasinglypopularplace
tolocateclusters.Ontheonehand,thereareclusterswhicharecreatedbyabottom-
-upinitiative,whichisderivedfromenterprisesthemselves;ontheotherhand,some
clusters are made due to strong support of public institutions. The growing
phenomenonofclusteringresultsfromvariousfactors.First,theAsianregionisan
attractiveregionfor foreign directinvestment,sothere aremanynewbusinesses.
Often,foreigncompaniestransferexperiencewhencreatingclustersforthebenefit
oflocalentrepreneurs.Second,inAsiancountriesthereisastrongindustrialtradition;
therefore,clusters are formednaturally asa consequence ofthe concentrationof
specialisedindustriesin thearea. Third,there aremanysmall-and medium-sized
Asiancompaniesthatareinvolvedininternationaltradeandonlythroughthecreation
ofaclusterhaveagreaterimpactonthemarket,suchasgarmentmanufacturingin
the world. Fourth, the local authority provides an effective policy cluster, which
supportsclusterinitiativesandentrepreneurs’awarenessofpotentialbenefitsofthis
formofcooperation.
AsianclustersdiffersignificantlyfromeachotherandthereisnosingleAsian
modelofclusters.InAsia,clustersareformedbringingtogetheralargenumberof
smallandmediumenterprises,whichbycooperationjoinforces,butalsoonecan

Chineseindustrialclusters… 165
providemanyexamplesofclusterscreatedbylargetransnationalcorporationsthatare
surroundedbytheirsuppliersandmakeupwholeindustrialcities.Asianclustersare
diverse,asarevariousAsianeconomies.Ontheonehand,onecanobserveclusters,
dealingwiththesimplestproduction,formedintheAsiandevelopingcountries;on
theother hand,there areclustersof moderntechnology,supra-regionalunits that
makeuptheinternationalmarket,fromtheAsiandevelopedcountries.Thegoalof
thisarticleistopresentChineseclusters,thenatureoftheiroperationandthemodels
ofcreationwhicharetypicalforChineseindustry.
Chineseclustersaretypicalindustrialclusters,whichisidenticalwiththenature
ofChinesemanufacturingfirms.IdentifyingChinaasacountrythatis“factoryof
theworld” translatesintomodels ofclusters occurringinthis country.Individual
regionsandindustrialcitieshavebeenhighlyspecialisedintheproductionofcertain
goodsand havebecome aworld centrefor thiskind ofproduction, forexample,
SocksCity,SweaterCity,Kid’sClothingCity,FootwearCapital,andsoon.Chinese
clusters are derived somehow from “specialty cities” of a particular kind. They
associate thousands of specialised small and medium enterprises but also larger
players,whocooperatewith eachotherinthe samearea, whichnaturallyfavours
formation of clusters in China. The cluster-based rural industrialisation not only
playsasignificantroleinChina’sindustrialgrowth,butwasalsoimportantinthe
earlystagesofindustrialisationinotherEastAsiancountries.1Mostoftheindustrial
clusters in China have emerged spontaneously, as in many other countries, but
the government (especially local governments) has given all kinds of support to
theirdevelopmentprocess.Chineseclustersoperatemainlyinthelabour-intensive
manufacturingsectors,thatis,atthelowerendoftheglobalvaluechain.2
Actuallyin Chinaalot ofclusters existandthis numberis stillincreasingin
connectionwithenlargingindustrialisedregions.Somecitieshavebecomefamousfor
theirparticularindustrialcluster,justafewexamplesofwhichareelectronicproducts
in Dongguan (Guangdong), bras and ladies’ underwear in Shantou (Guangdong),
transportequipmentinShandongandlightersinWenzhou(Zhejiang).Clustersare
predominantlystilllocatedintheeasternpartofthecountry(seeFigure1).
OneoftheexamplesofChineseclusterswhichcanbeconsideredasa“specialty
city” isZhiliCluster.Zhili is atown named after textileindustry located inthe
eastoftheHuzhoucityinZhejiangprovince.Itisacompleteproductionchainof
children wearcomposed of10.4thousand enterprises, whichrepresent particular
links in the production chain, such as design, printing, embroidery, buttons and
garment manufactur ing factories. Most of the output of the companies f rom the
clusterisdirected totheinternationalmarket,only21% remainson thedomestic
1B.Fleisher,D.Hu,W.McGuire,X.Zhang,The Evolution of an Industrial Cluster in China,De-
velopmentStrategyandGovernmentDivision,IFPRIDiscussionPaperNo.00896,September2009,
p.1.
2D.Z.Zeng,How Do Special Economic Zones and Industrial Clusters Drive China’s Rapid Devel-
opment?,PolicyResearchWorkingPaper5583,TheWorldBank,2011,p.25.

166 AnnaH.Jankowiak
market.The clusterandrelatedindustries areresponsiblefor40% of theGDPof
thewholeregionand250thousandof300thousandpeopleinthetownaremigrant
workersandentrepreneursinvolvedincluster’sactivities.3
Whatisextremelyinterestingisthegeographicaldistributionofindustrialclusters
in China. There are several regions concentrating most dominant clusters, while
theotherslacktheseformsofcooperationortheydonot have astronginfluence.
DefinitelythelargestnumberofclustersislocatedintheeastasshowninFigure1.
Bycontrast,mostclustersareclustersfromseveraldominantindustriesasshownin
Table1.
Figure 1. IndustrialclustersinChina
Source:Li&FungResearchCentre,TheBeijingAxis,www.thebeijingaxis.com.
3H. Zuhui,Y.Jifei, S. Yu,Stay Factors in the Industrial Transfer of Cluster: A Case Study of
Children Wear Cluster of Zhili, Zhejiang, China,SystemsofInnovationforInclusiveDevelopment,
InternationalDevelopmentResearchCouncil,Canada,pp.3–4.

Chineseindustrialclusters… 167
Top100industrialclustersinChina
Provinces/municipalities/
regions
(numberofclusters)
City/county Industrialclusters
1 2 3
Zhejiangprovince(25) Xiaoshan,Hangzhou Steelstructuresindustrialcluster
Fuyang,Hangzhou Boxboardindustrialcluster
Lucheng,Wenzhou Lighterindustrialcluster
Ouhai,Wenzhou Locksindustrialcluster
Leqing,Wenzhou Mediumandlowvoltageelectricalappliancesindus-
trialcluster
Longwan,Wenzhou Valvesindustrialcluster
Pingyang,Wenzhou Plasticwovenpackagingindustrialcluster
Chongfu,Tongxiang,Jiaxing Furindustrialcluster
Haining,Jiaxing Leatherindustrialcluster
Warpknittingindustrialcluster
Pinghu,Jiaxing Opto-mechatronicsindustrialcluster
Yuyao,Ningbo Moldindustrialcluster
Cixi,Ningbo Householdelectronicappliancesindustrialcluster
Ninghai,Ningbo Stationeryindustrialcluster
Yiwu,Jinhua Smallcommoditiesindustrialcluster
Yongkang,Jinhua Hardwareindustrialcluster
Electrictoolsindustrialcluster
Shaoxing Textileindustrialcluster
Dyeingindustrialcluster
Zhuji,Shaoxing Socksindustrialcluster
Pearlsindustrialcluster
Shengzhou,Shaoxing Tiesindustrialcluster
Wenling,Taizhou Plasticshoesindustrialcluster
Luqiao,Taizhou Solidwasterecyclingindustrialcluster
Anji,Huzhou Bambooproductsindustrialcluster
Jiangsuprovince(16) Yixing,Wuxi Electricwiresandcablesindustrialcluster
Environmentalprotectionequipmentindustrialcluster
Purpleclayteawareindustrialcluster
Xishan,Wuxi Electriccarindustrialcluster
NewdistrictofWuxi Electronicsindustrialcluster
Photovoltaicindustrialcluster
Kunshan,Suzhou ITindustrialcluster
Circuitboardindustrialcluster
Changshu,Suzhou Apparelindustrialcluster
Shengze,Wujiang,Suzhou Silktextileindustrialcluster
Danyang,Zhenjiang Eyewearindustrialcluster
Jingjiang,Taizhou Shipbuildingindustrialcluster
Jiangyan,Taizhou Energyequipmentindustrialcluster
Pizhou,Xuzhou Woodprocessingindustrialcluster
Jiangdu,Yangzhou Leathershoesindustrialcluster
Donghai,Lianyungang Siliconeproductsindustrialcluster
Guangdong
province(13)
Zhongshan Machineryandelectronicsindustrialcluster
Packagingindustrialcluster
Guzhen,Zhongshan Lightingindustrialcluster
Shaxi,Zhongshan Casualwearindustrialcluster
Dongguan Electronicproductsindustrialcluster
Xintang,Zengcheng,
Guangzhou Denimclothingindustrialcluster
Huadu,Guangzhou Automobileindustrialcluster
Shantou Underclothingindustrialcluster

168 AnnaH.Jankowiak
cont.
1 2 3
Chenghai,Shantou Toysindustrialcluster
Shenzhen Electronicproductsindustrialcluster
Yuncheng,Yunfu Stoneindustrialcluster
Xinxing,Yunfu Kitchenwareindustrialcluster
Huidong,Huizhou Shoesindustrialcluster
Shandongprovince(10) Jiaonan,Qingdao Textilemachineryindustrialcluster
Haiyang,Yantai Sweaterindustrialcluster
Penglai,Yantai Wineindustrialcluster
Wendeng,Weihai Textileindustrialcluster
LinqingKi Axlebearingindustrialcluster
Rizhao0M Fisheriesindustrialcluster
Zhangqiu,Jinan Transportequipmentindustrialcluster
DezhouflJISolarwaterheaterindustrialcluster
Liaocheng Steelpipeindustrialcluster
Linyi Cropprotectionmachineryindustrialcluster
Fujianprovince(7) Jinjiang,Quanzhou Trainersindustrialcluster Zipperindustrialcluster
Nan’an,Quanzhou Plumbinghardwareindustrialcluster
Hui’an,Quanzhou Snacksindustrialcluster
Putian Jadeprocessingindustrialcluster
Xianyou,Putian Chineseclassicalfurnitureindustrialcluster
Fengli,Shishi Children’swearindustrialcluster
Hebeiprovince(6) Hejian,Cangzhou Insulationmaterialsindustrialcluster
Botou,Cangzhou Metalcastingindustrialcluster
Qinghe,Xingtai Cashmereindustrialcluster
Taocheng,Hengshui Rubber(appliedinengineering)industrialcluster
Xianghe,Langfang Furnitureindustrialcluster
Yongnian,Handan Fastenersindustrialcluster
Shanxiprovince(4) Taiyuan Stainlesssteelindustrialcluster
Qingxu,Taiyuan Radiatorindustrialcluster
Dingxiang,Xinzhou Forgingindustrialcluster
Taigu,Jinzhong Cokingindustrialcluster
Henanprovince(3) Gongyi,Zhengzhou Aluminumproductsindustrialcluster
Refractorymaterialsindustrialcluster
Changyuan,Xinxiang Cranesindustrialcluster
Liaoningprovince(3) Faku,Shenyang Ceramicbuildingmaterialsindustrialcluster
Dashiqiao,Yingkou Magnesiumproductsindustrialcluster
Dandong Measuringinstrumentsindustrialcluster
Hubeiprovince(2) Yichang Phosphoruschemicalsindustrialcluster
Xiantao Nonwoventextileindustrialcluster
Hunanprovince(2) Liuyang,Changsha Fireworksandfirecrackersindustrialcluster
Liling,Zhuzhou Ceramicsindustrialcluster
Jilinprovince(2) Tonghua Pharmaceuticalindustrialcluster
Steelindustrialcluster
Shanghai(1) Jinshan Chemicalsindustrialcluster
Chongqing(1) Bishan Motorcycleindustrialcluster
Anhuiprovince(1) Hefei Householdappliancesindustrialcluster
Heilongjiang
province(1) Lanxi,Suihua Linenproductsindustrialcluster
Guizhouprovince(1) Renhuai,Zunyi Chineseliquorindustrialcluster
Shaanxiprovince(1) Baoji Titaniumproductsindustrialcluster
XinjiangUygur
AutonomousRegion(1) Shihezi Cottontextileindustrialcluster
Source:Li&FungResearchCentre,IndustrialClustersSeries,June2010,Issue6,pp.10–11.

Chineseindustrialclusters… 169
AccordingtotheChineseAcademyofSocialSciencesandtherankingofthetop
100industrialclustersinChinaonecanmakethefollowingobservations:
Uneven geographical distribution is characteristic of industrial clustersa)
acrossChina–industrialclustersareconcentratedinthecoastalprovinces,butthose
intheinlandareemerging–around80%ofclustersarelocatedinthecoastalprovin-
ces.Forty-twoofthemaresituatedintheYangtzeRiverDeltaregionandnineinthe
PearlRiverDeltaregion.MostoftheindustrialclustersarelocatedinJiangsu,Zhe-
jiang,GuangdongandShandongprovinces–60%ofthetop100clustersin2009.
Thecoastalindustrialclustersaccommodateawidevarietyofproductswhi-b)
lethecentralandwesternareasarespecialisedinproductsprocessedfromresour-
cesavailableinthe regions– awiderangeofproducts isproduced inthecoastal
industrialclusters, fromlowvalue-added industries,suchas agriculturalproducts
processing,toITandelectriccarmanufacturing.
ThebiggestindustrialclustersinChinaaremostlyengagedinmanufactu-c)
ring–allofthetop100clustersareengagedinmanufacturing.MostofChineseclu-
stersproducelowvalue-addedgoods,suchasclothes,textile,shoes,furniture,toys
andstainlesssteel.Itisworthemphasisingthattherearenoclustersengagedinthe
servicessector.Apparelandtextileisthelargestsectoronthelist–20appareland
textileclusterswereclassiedonthelist.
Morehighvalue-addedindustrialclustersare gainingcompetence –mored)
high-techindustrialclustersenteringthetop100listin2009.Forexample,theelec-
triccarclusterandthephotovoltaicclusterinWuxiofJiangsuprovince,theelectro-
nicsclusterinShenzhenandthesolarwaterheaterclusterinDezhouofShandong.
Thetrendissettocontinue,consistentwiththegovernmentpolicytoimprovethe
qualityofeconomicgrowth.
New,competitiveindustrialclustersareconstantlyemerging–manyindu-e)
strialclustersareemergingascompetitiveplayers,challengingtheoldones.4
Accordingtothedata,theclusterrepresentsamajorpowerinitsregion,aswell
asnationally,andthrough thepro-exportorientation alsoshapes theinternational
market.Whatisveryinterestingis,however,thecompositionandstructureofthis
clusterof entities. Thevastmajority ofthecluster operatorsaresmall businesses
employingup to60employees, whilethereare fewlargeenterprises.5 Datafrom
detailedresearchshowthat70%ofthoseresponsibleforsewingmaterialsaresuper-
smallbusinessesandsmall,whileinthecaseof production–60%of theentities.
Thismeans thatthe undoubtedsuccess of thecluster correspondsto manysmall
businesses, which through the development of cluster’s bond contribute to the
increaseintheproductioncluster.
4Li&FungResearchCentre,Industrial Clusters Series,June2010,Issue6,pp.12–13.
5 Super-smallenterpriseshavelessthan20employees,smallenterpriseshave21–60employees,
medium-smallenterpriseshave61–120employeesandtheresthavemorethan120employees.

170 AnnaH.Jankowiak
EveryChinese cluster hasits own developmenthistory andwas formed ina
differentway.However,somemainreasonsforcreatingacluster in Chinacanbe
presented:
The open door policy and reform – f) almostalltheclusterswereformedafter
China’sopening up.The reformsand opendoor policiesprovided amacro-envi-
ronmentthatallowedtheprivatesectortoourishandforeigninvestmenttoenter
China.Beforethereforms,allprivatebusinesseswereofciallyforbidden.
Long history of production or business activities in a particular sector – g) bu-
sinessactivityinagivensectorprecededmanyChineseclusters.Forexample,the
WenzhoufootwearclusterinZhejiang provincehas along historyof shoemaking
andhasbuiltuplocalproductioncapacityovertime.
Proximity to major local markets and infrastructure – h) ingeneral, mostof
theseclusters are locatedin thecoastal region,close to internationalmarkets. In
addition,theyarealsogenerallybasedinatownormajorcityandareclosetomain
roads,railways,highways,andports.Thislocationadvantageisespeciallyimportant
forexport-orientedclusters.
Entrepreneurs with tacit knowledge and skills in production and trading – i)
thelongtraditionandknowledgepasseddownfromgenerationtogenerationthro-
ughfamilyandkinshiptieshaveplayedanimportantroleinclusterformation.
Foreign direct investment and the diaspora – j) clustersbenetingfromFDI
andthediasporaareconcentratedmostlyontheeasternsideofthePearlRiverDelta
region,intheDongguan,HuizhouandShenzhenareas.Theeconomiesoftheseclu-
stersaredrivenmainlybyoverseasChineseandforeignrms.
Natural and human endowments – k) suchfactorsareespeciallyimportantfor
naturalresource-based clusters,such as those in seafoodprocessing, fruits,stone
carving,aquaculture,ceramicsandfurniture.
Market pull – l) whenChinahadbeenrstopenedup,therewasahugeshor-
tageofalmosteverythingasaresultofthecentrallyplannedeconomy.Thesedespe-
ratemarketneedsprovidedapowerfulreasonfortheexistenceofnumerousclusters
thatsprangupinashortperiodoftime.
Government facilitation and industrial transfer – m) inrecent years, because
ofrising costs,limitedland andtough environmentalrequirements,many coastal
clustershavebeguntomoveinland;someclustersinthemiddleandwesternregions
wereformedthroughsuchtransfers.Insomecases,thosemoveswerehighlyinu-
encedbydeliberategovernmentpolicies;however,suchtransfersarestillbasedlar-
gelyonamarketchoice,inwhichthegovernmentplaysmainlyafacilitatingrole.6
ClustersinChinaaresuccessfulprimarilybecausetheyareabletoincreasethe
diversityandsophisticationoftheirbusinessactivitiestoachievegreaterproductivity,
efficiency and competitiveness. In the export-led growth model, this ability is
especiallycrucial.Thewell-knownlow-costlabourfactorandmanyotherelements
havecontributedtothesuccessofChineseindustrialclusters.Theseinclude:
6D.Z.Zeng,How Do Special Economic…,op.cit.,pp.26–27.

Chineseindustrialclusters… 171
Efciency gains and lowered entry barriersa) –inmanyChineseclusters,as-
sociatedrmsoperateindifferentmanufacturingsegmentsaswellasinrelatedse-
rvices,andbecauseofthattheyformwell-functioningvaluechainsandproduction
networkswithanefcientdivisionoflabour.Forexample,theDatangsockscluster
inZhejiangprovincecomprises2,453socksrms,550rawmaterialrms,400raw
materialdealers,312hemstitchingfactories,5printinganddyeingplants,305pac-
kingfactories,208mechanicalttingssuppliers,635sockdealersand103shipment
servicerms.Inaddition,DatangLightFabricandSockCityhas1,600shops.
Effective local government supportb) –mostChineseclustersreceivehelpand
supportfromtheauthorities,althoughitsformandtimeallocationaredifferent.In
mostcases,governmentassistancegoestotheclustersthatalreadyexistandhave
alreadybeguntoshowtangiblebenets.SupportforclustersfromtheChineseau-
thoritiesmayhavedifferentrangesbutusuallymanifestsitselfby:
Infrastructure building –  – the Chinese government has given high priority to
roads,water,electricityandtelephonelines,andhavetriedtobuildaspecialised
marketorindustrialparktofacilitatebusinessactivities.Thismarketcanbring
suppliers, producers, sellers and buyers together and help build forward and
backwardlinkages.Forexample,inXiqiaothecitygovernmentsetuptheSouth
TextileMarketin 1985to replacetheoriginalinformalmarket toregulate the
localmarketandstimulatemassproductionandsales.
Regulations, quality assurance and standards setting – –localgovernmentsoften
try to improve services and regulatory environment to facilitate business
generationand help clustersoperate normally andmaintain dynamicgrowth;
theyintroducespecicregulations,especiallythoserelatedtoinvestmenttype,
productqualityandstandards,toensurethat productsmadein clustershavea
marketfuture.
Technology, skills and innovation support – –localgovernmentsareincreasingly
emphasisingtechnologyinnovationandupgrading.Becauseimitationwithina
clusterissometimeseasy,rmshesitatetoinvestininnovationandtechnology
upgrading,andthusgovernmentinterventioncanbe justied.Forexample, in
Guangdong, the provincial government has invested RMB 300,000 in each
specialised town to build a public technology innovation centre to support
clusters’innovationandtechnologyactivities.
Preferential policies and nancial support –  –local governmentsoften provide
certain incentives, including desirable land, tax reduction or exemption, and
accesstocreditsandloanstoattractqualiedenterprisestoclusters.
Knowledge, technology and skill spillovers through inter-rm linkagesa)  –
manyclustersbenetedfromstate-ownedenterprises(SOEs)andFDI,whichpro-
videdimportantinitialtechnologyandacrucialimpetusforclusters’development.
Theclustersinthecoastalregion(thePearlRiverDelta–clustersinHuizhouand
Dongguan)weredrivenbyFDI,especiallyfromthediasporainHongKong,China,
Macao,ChinaandTaiwan.

172 AnnaH.Jankowiak
Entrepreneurial spirit and the social networkb) –manyclustersinChinahave
alonghistoryofbusinessandindustry,whichcanhelpthemontheirwaytodevelop-
ment.Becausemanytransactionsinvolveanumberofdifferentplayersinacluster,
theuseofformaland,whatisevenmoreimportant,informalcontractsiscrucial.
Innovation and technology support from knowledge and public institutionsc)
– Besides government’s actions, universities and research institutes also provide
supportforinnovationandtechnologyupgradinginclusters.Inthecaseoftheclu-
sterinWenzhou,WenzhouUniversityhas played animportantrole insupporting
technologyinnovationinthefootwearandotherclusters.Thecentrehasfocusedon
“green”productdevelopment,cleanleatherproductiontechnologyandotherhigh-
-techresearchonleatherproduction.
Support from industrial associations and other intermediary organisationsd)
–many industrialassociations,especially thosein industrialclusters,have begun
toplayimportantroles. InWenzhou,shoemakingrmsfoundedthe rstshoema-
kers’associationin1991–theWenzhouLuchengAssociation.Itcurrentlyhas1,138
membersand 26branches. Thetasksof theorganisation areto connectthe local
authorityandrms,introducenewtechnologiesandhelpimproveshoequality,help
rmsenterand expandondomesticand overseasmarketsthrough marketing and
brandingservices,provideinformationservices,promotetradeandprovidetraining
inpartnershipwithnationalfootwearinstitutions.7
Inconclusion,itcanbesaidthattheformoflinksbetweenproductioncompanies
such as industrial clusters is expanding in the case of the Chinese economy.
Currently,therearemanyclusterslocatedmainlyintheeastofthecountry,whichare
typicallyproductiveinnature.These clustersarecomplexsupplychains, creating
a whole industrial city specialising in a particular production. Affiliated entities
offer comprehensive production from a given field (e.g., clothing) as each stage
ofproduction isrealised inthe cluster.This designensures efficientoperationof
thedomesticmarketand,evenmoreimportantfromtheperspectiveoftheChinese
economy,oftheinternationalmarket.Althoughindustrialclustersaretraditionally
understoodasclustersoflow-levelinnovationinmanyChineseclustersactionsare
aimedatincreasinginnovationactors.Asignificantroleinthisprocessisplayedby
thenational andlocalpower,which througha seriesofvaried activitiessupports
thecreationofR&Dcentresinthecluster.Improvinginnovationclusters,including
thosenotproducingtraditionalhigh-techgoods,willallowforabetteradaptationto
changingmarketcircumstances andimprovementof theconditionofthe Chinese
economy.
7Ibidem,pp.28–33.

Chineseindustrialclusters… 173
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  Klastry to coraz powszechniejsza forma współpracy przedsiębiorstw, która
dajezrzeszonympodmiotomogromnemożliwościrozwoju i wymiany doświadczeń. Kraje
zregionuAzji i Pacyfikustają się corazczęstszym miejscem ulokowaniaklastrów,naco
nakładająsięzróżnicowaneczynniki.Regionazjatycki jest atrakcyjnym regionem dla bez-
pośrednichinwestycjizagranicznych,dziękiktórympowstajewielenowychprzedsiębiorstw,
atakżeistniejetamsilnatradycjaprzemysłowa,zatemklastrytworząsięniejakonaturalnie
jakonastępstwokoncentracjiwyspecjalizowanegoprzemysłunadanymterenie.Przykładem
koncentracjiprzemysłuwstopniu większym niż przeciętna sąklastry przemysłowe uloko-
wanewChinach.Wieleregionówchińskichzajmujesiętylkookreślonąprodukcją(np.tek-
stylia),któranastępnietrafianarynekkrajowyimiędzynarodowy.Sątoniezwyklesprawnie
zorganizowaneklastry-miasta.Funkcjonujewnichogromnaliczbamałychiśrednichprzed-
siębiorstw,które działając razem, mają większeszanse na osiągnięciewysokiego poziomu
konkurencyjności.
klastrychińskie,klastryprzemysłowe,rozwój.