An Empirical Study on Local Government Influencing Chinese Traditional Industrial Cluster Development

The competitive advantages of cluster firms are based on collective efficiency, the transfer and diffusion of technology and knowledge. The local government plays an important roles in the process of cluster development. The empirical analysis results shows that the effect of logical government includes five aspects from Zhejiang umbrella cluster, namely entrepreneur environment, technology incentive, intermediary organization development, talent policy, and regional marketing. And significant differences were existed within these factors. It was meaningful to establish industrial policies for local government.