tci 2014 cluster management in china
DESCRIPTION
By Tiyan Shen, presented at the 17th TCI Global Conference, Monterrey 2014.TRANSCRIPT
Cluster Management in ChinaTiyan Shen
Parallel 3.1 Cluster implementation in different parts of the world
12 November 2014
CLUSTER MANAGEMENT IN CHINA
TIYAN SHEN
PEKING UNIVERSITY
17 TH TCI GLOBAL CONFERENCE | CREATING SHARED VALUE THROUGH CLUSTERS FOR A SUSTAINABLE FUTURE
OUTLINE
• Actual Challenges
• Theoretical Research
• Data and Method
• Cluster Management
Economic Development Zone Phenomenon in China
Facing problems
Solution
ACTUAL CHALLENGES
Economic Development Zone
One of the creations in China since its market reforms began in 1979
Types
Economic and technological development zone; High-tech zone; Industry park etc.
Function
Promoting industry agglomeration and forming industrial cluster to stimulate economic growth
STAGE 1Building
infrastructure
STAGE 2Agglomeration without linkage
STAGE 3Cluster and innovation
Chinese economy has passed through three stages of development
There are 171 national economic development zones in China up to 2012 which become support points for local government to expand domestic demand and promote job growth, and the number is growing.
There are a lot of problems with economic development zones
—Lack of supporting facilities
—Weak linkages between enterprises
—Low creativeness
—Disorder competition in land sales market
—Poor public serviceEmpty city in Ordos, Inner Mongolia, China
Kew way of solving those problems: Forming industry clusters
—Building linkage between enterprises
—Promoting creativity
—Expanding employment
—Accelerating economic growth
THEORETICAL RESEARCH
Research Focus
Industry Cluster Quantitative Identification
Cluster Mapping
Deficiency
A lot of research about cluster mainly focus on identification and explanation
——Cluster identification : definition, recognition, estimation
——Cluster explanation: analyzing the cluster structure, mechanism and evolutionary process by investigated case
Method Measure For instance
Space Gini
coefficient
Agglomeratio
n
Gleaser;Elson(19
97)
location Quotient Specializatio
n
Alexander(1958)
Input-output
Relatedness
between a
Pair of
Traded
Industries
Leontief(1936)
Principal Component
Analysis
Feser;Bergman(1
990)
Algorithm Porter(2013,2014)
Network Analysis Duque;Rey(2008)
Industry Cluster Quantitative Identification
http://www.clustermapping.us/cluster
! Above research did not implement in space
—Cluster mapping solved this problem
Cluster mapping does not work in China
—There is no rich public statistic data in China
—Administrative region does not reflect cluster boundary
—How the clusters change over time
Data
Cluster Identification
Geocoding
Kernal Analysis
DATA AND METHOD
Data Source
2002 and 2007 Input-Output Table of China
1998-2011 China's industrial enterprises above designated size data
Designated size:
1998-2010:
prime operating revenue
> 5 million yuan(about 0.75 million USD)
2011:
prime operating revenue
> 20 million yuan(about 3 million USD)
Industrial Enterprises Attribute Table
Cluster Identification
Locational Correlation :
LC-Employmentij=Correlation(Employmentir,Employmentjr)
LC-Establishmentsij= Correlation(Establishmentsir,Establishmentsjr)
Input-Output Links
IOij=max{Inputi→j, Inputi←j ,outputi→j, outputi←j}
Similarity Matrix Mij=[(LC-Employmentij+ LC-Establishmentsij )/2+IOij]/2
Step1 : According to algorithm(Delgado, M., M.E. Porter, and S.Stern, 2013), we choose three most important indicators in consideration of Chinese available data
Step2 : Broad Parameter Choices
Step 3: Clustering Function
7980828144586577788384 23288 5495051454647 613 8 7161215111735102666 91814192023222125244285272829304031343639373843414857746269727576596063616467738789687071 133 35253545586 456
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
Result: 87 Industry Professions -> 24 clusters
Industry
code
Industry profession
372 Auto manufacturing
354 Pumps, calves, compressors and similar
machinery manufacturing
335 Industry of colored metals smelting and pressing
391 Electric manufacturing
393 Wire, cable, fiber optic cable, and electrical
equipment manufacturing
395 Other electrical machinery and equipment
manufacturing
399 Household electricity and the electric appliance
manufacturing industry
e.g., Automobile Industry Cluster
Makeing use of data from Baidu(similar to Chinese Google) mapping web service
Enriching geographic coordinates with the address of China's industrial enterprises above designated size
Geocoding
Kernel estimation
—Define a window of fixed size and imagine
—Centring this on a number of locations in turn,
—Producing a more spatially ‘smooth’ estimate of variation in λ( s )
—Obtaining by using a fixed grid of quadrats.
Automobile Industry Cluster in China(2002)
The exchange rate is 8.3 Yuan per US Dollar (end of 2002)
Automobile Industry Cluster in China(2007)
The exchange rate is 7.3 Yuan per US Dollar (end of 2007)
CLUSTER MANAGEMENT
Four Steps about Cluster Management in China
Future work
Step 1 : Choosing Competitive Industries
According to new structural economics(Justin YifuLin, 2013), when choosing potential competitive industries, government could consult other regions where average wage is twice or triple as high as local.
Step 2 : Estimating Situation
After choosing competitive industries, government obtains information(gross industry value, employment, new products output, average wage, development and so on ) of the same cluster in local and other region from space database.
Step 3 : Attracting Business
Cluster management cloud is a platform which helps governments to attract business from a huge number of enterprise information database according to their own advantages and competitiveness.
This platform will reduce search cost and improve the efficiency of matching.
Step 4 : Building the infrastructure and soft environment
What government need to do is to build the infrastructure and soft environment to produce “pools”, including labor pool, fund pool, creativity pool, project pool and so on.
Future work:
a) Building cluster management platform
Future work:
b) Collecting more data
Web Crawlers Registration on the platform