China's hardware industry cluster highlights eight advantages

China has formed three major hardware industrial zones in the Pearl River Delta, Yangtze River Delta and Jiaodong Peninsula, and there have been hardware industry clusters such as Zhejiang Yongkang, Zhongshan Xiaolan and Jiangsu Qidong. The development of China's hardware industry clusters shows eight advantages:
First, it is conducive to the deep division of labor and technological innovation between enterprises. Each enterprise will concentrate all its funds and energy on its most advantageous part, that is, the core competence of the enterprise, and other related business outsourcing will be completed by professional companies. Each product is a summary of the core competence of many enterprises.
Second, it is conducive to saving transaction costs. The company is faced with a large number of raw material suppliers and equipment suppliers who can purchase various inputs, including raw materials, components, machinery and equipment, at lower cost, higher requirements and faster speed. Services and human resources.
Third, it is conducive to mutual advancement between industry and professional markets. Industrial clusters are conducive to the formation of professional markets, and professional markets that have a greater impact at home and abroad are beneficial to the sales of products, as well as to understanding information and timely adjusting product mix.
Fourth, it is conducive to stimulate competition awareness. The same kind of products are produced by many enterprises, and competition between enterprises will naturally form, so as to continuously improve product quality and grade.
Fifth, it is conducive to attracting investment. The industrial supporting system and service system in the industrial cluster are perfect, and the entry cost and exit cost of the founding enterprise are low, which not only helps to attract external direct investment, but also facilitates the financing of enterprises within the cluster in the domestic and foreign capital markets.
Sixth is conducive to the governance of "credit deficiency." Due to the concentration of regional industries, many enterprises know each other well. Once someone has defaulted on fraud, fraud, and debt evasion, they will immediately spread in the local area. It is difficult for untrustworthy enterprises to stand on the ground. Therefore, the probability of untrustworthiness between enterprises is high. Lower.
Seven is conducive to promoting enterprise innovation. The collection of the latest market, product and technology information, as well as the frequent exchange of information within the cluster, have led to more opportunities for innovative ideas to collide. The competition within the cluster and the exchange of personnel also make the company's learning aspirations stronger, and it is easy to drive innovation in the entire industry.
Eight is conducive to the creation of regional brands. The regional industrial advantages and product characteristics are conducive to the formation of regional brands. The regions with strong brand influence can attract more dealers, suppliers, investors and all kinds of talents. Thereby further promoting the prosperity of the upstream and downstream industries, it is very beneficial to the overall development of the regional economy.

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