This article is provided by Peter Kin, the investment promotion director of our industry park.

        The definition of“enterprise”as an organization that benefits from production or service activities is consistent with the historical origin of“enterprise”and can be recognized by common sense. The soul and core of the "enterprise" is the "entrepreneur", which is the owner and organizer of the enterprise. Entrepreneurs use their own assets and opportunity costs as a risk to seek a“risk premium”that exceeds the income of non-entrepreneurs. The decentralization of equity and the emergence of professional managers as agents do not affect the understanding of the nature of companies and entrepreneurs.

        Manufacturing enterprises usually include production, sales, after-sales service, research and development departments. They perform corresponding enterprise functions. Entrepreneurs and these departments together form a complete“enterprise”that completes the entire process of the business.

        The vast majority of factories invited by Industrial Park are from cross-regional and multinational enterprises. These factories are part of the mother company. The managers of the factories are usually “production managers” or “factory managers” rather than the entrepreneurs themselves. The main job of these factories is to organize production to complete orders without R&D and sales. Its suppliers and customers are determined by the headquarters. The decision-making power of the factory is limited.

        Due to the incompleteness of the factories invited Industrial Park, more importantly, due to the absence of entrepreneurs, the theory of “industrial clusters” is completely ineffective in the development zone(Industrial Park): geographical proximity does not necessarily lead to in-depth exchanges between factories. The  rivalry is still the competition between the headquarters which are thousands of miles away. The factory supply chain continues the original path. The local replacement progress is slow. The transmission of demand information from local market to the headquarter is slow.

        Therefore, the investment attraction of the Development Zone does not bring "industrial clusters". Seeking “industrial cluster” in the Development Zone is a strategic mistake and strategic misdirection.

        The status quo in the real world also shows that all existing “industrial clusters” are the result of the natural evolution of local enterprises and local entrepreneurs. The “industrial clusters” that all Development Zones “build” are only the concentration of similar factories or upstream and downstream factories, rather than a "industrial cluster" with competitive advantages.