Competitive Advantages through Clusters : An Empirical Study with Evidence from China

The world over, clusters are home to leading firms and institutions that compete on the edge of technology.

They can be found in developed and developing countries alike and comprise such famous ones as Silicon Valley, London "s financial center, ceramic tile and fashion in north Italy, wine in Bordeaux, automotive in Stuttgart and Munich, software in Bangalore, and manufacturing in China "s Pearl-river delta.

Today they are studied by a variety of scholars from different fields including economists, social scientists, and strategists, but also by a growing number of business practitioners and policy makers.3 As a result, knowledge on the capacity of clusters to promote regional economic development and national prosperity and the role of local industrial policy in creating new clusters has increased rapidly in recent years The present research is best described as being exploratory in nature.

It elaborates and extends existing theory. By doing so, it takes up a distinct position within scientific theory that is defined by three levels of analysis: (1) the meta-methodological level, (2) the methodological level, and (3) the theoretical level.