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Type of Technology, Transaction Costs with a Class of Industrial Clusters’ Causes and Evolution Trend

Author: LiuSiYu
Tutor: XieZuoShi
School: Zhejiang University of Finance
Course: Western Economics
Keywords: industry clusters transaction costs standardization technology non- standardization technology
CLC: F279.2
Type: Master's thesis
Year: 2012
Downloads: 73
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Industry cluster is a universal economic phenomenon in modern world, also the focus in the academic interests at home and abroad at present. The research directions on cluster are numerous, this paper mainly focus on the studying of the formation and evolution theory of industry cluster. Baaed on Transaction cost Theory, this paper chooses one to analyze: the formation of fabrication industry cluster powerd by standardization technology, and then indicates that industry cluster is another resource decision model between market and enterprise, and then comes to the conclusion that optimal resource configuration is determined by the transaction costs differ from technical source. Lately, we deduce the proper evolution direction of these industry clusters we have studied according to the analysis of the related stories.The fabrication industry cluster powerd by standardization technology takes some proportion in today’s clusters, especially in our country, many industry clusters come from family firms in ZheJiang belong to this kind of cluster. One distinguishing feature of this kind of cluster is that the division of labor based on the market mechanism is very deep and refinement. It places the division in interior market instead of enterprise, which rightly observed by Kos. At the same time, the market we said differs from the market Kos had identified, it only consist in the interior industry clusters. Consequently, we say that industry cluster is another resource division model enterprise and market.In reality, in the course of resource distributing, taking which method is determined by the cost of each specific method, so that the formation of industry cluster necessarily dues to the saving of transaction costs .We classify the technology as standardization and non-standardization technology, according to the different origin, and make a comparation in transaction costs with different resource division methods based on the features of these clusters. We construct a simple model of industry cluster simplify the divisions into two parts, one powerd by standardization technology, the other non-standardization technology. By comparing transaction costs to analyze these two parts would take which division way on different conditions. At last, we conclude that only with standardization technology industry cluster can be formed. In other words, the cause of formation of cluster we studied is standardization technology. When non-standardization technology takes part, the economic entity will be prone to make division in the interior enterprise. With this conclusion we will compare the causation between formation and evolution of industry cluster and formation of standardization technology, then conduce that standardization technology is the prerequisite and essential condition of the formation of industry cluster.Afterwards, we take some fabrication industry clusters powerd by standardization technology which is much representative for example: DaTang socks cluster, low-voltage apparatus cluster in LiuShi village, YongKang vacuum cup cluster. We confirm the conclusion and infer the future direction of these clusters.With increasing cost of human resource and development pressure of global economics, industry cluster will go to highly mechanized or disappear because of comparative pressure if the condition does not change. While the condition changes into non-standardization technology, these clusters will go to pot and paradigm shift, and in the process integration and industry cluster will coexist, and at last change into bigger cluster, as for TOYOTA cluster in Japan, and LiuShi low-voltage cluster is just on the stage of integration and cluster division coexist.By studying the formation and evolution trends of industry cluster powerd by standardization technology is not only able to enrich the theory of formation and evolution mechanism, but also provide these clusters with a theoretical effect. At present, these clusters take most proportion in our country, especially in ZheJiang, so studying this issue is significant. And as far as the conclusion of future direction is concerned, even if these clusters has not died out, they will go to low-profit, so if the cluster want further development, the technology casting is at the top of a hat.

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