the effect of clusters on the development of the software industry in dalian， china

1、The effect of clusters on the development of the software industry in Dalian, ChinaChiou-Guey Jan*, Chao-Chin Chan, Chia-Hung TengDepartment of International Business, Providence University, 200 Chung Chi Rd., Taichung,

2、Taiwana r t i c l e i n f oArticle history:Received 28 December 2011Accepted 5 January 2012Keywords:ChinaIndustry clusterSoftware industry developmentSustainable citiesSystem dynamicsa b s t r a c tThe trend toward globa

3、lization has not only facilitated the circulation of capital, tech-nology, and talent, but has also provided industries in developing countries with anopportunity for rapid development. This study uses the system dynamic

4、s methodology toconstruct a dynamic development model to explain the phenomenon of clustering in theDalian, China software industry. The results indicate that the rapid development of theDalian software industry is the r

5、esult of a growth effect generated primarily from theclustering of talent, technology, and capital and their mutual reinforcement. This studyalso discusses future bottlenecks to growth in the Dalian software industry tha

6、t may resultfrom limited environmental resources.Crown Copyright ? 2012 Published by Elsevier Ltd. All rights reserved.1. IntroductionIndustrial development in any country is a complex, dynamic, and sustained process tha

7、t is greatly affected by history, culture, politics, economy, society and the timing of development. The development is controlled by technology- related policies that are implemented in each country [1–3]. In addition,

8、state guidance of industrial development can include talent incubation, capital accumulation, technical learning, and innovation [4–6]. Since all these factors are linked, the structure of industrial development is extre

9、mely complicated [7,8], and therefore developing policies regarding industrial development is comparatively complex [9]. In recent years, China has duplicated the industrial development patterns of Taiwan in order to pur

10、sue its own industry development, and China has exhibited astonishing development performance. For example, an industry cluster of semiconductor and electronic and electrical machinery manufacturers was formed using the

11、Shanghai region as the hub, and distributing throughout the Yangtze River Delta and along the lower reaches of the YangtzeRiver. In another example, an automobile industry cluster centered around Jiangsu, Fujian, and Gua

12、ngdong has developed gradually and now has the potential to develop into an international automobile manufacturing base in China [10–12]. Since 1978, the Chinese government has promoted a series of development projects t

13、o serve its domestic software industry, including the “Torch Program,” “Ten National Software Industry Bases,” “Six National Software Export Bases”; it also has approved eleven key software parks in Beijing, Shanghai, Da

14、lian, Jinan, Xian, Nanjing, Changsha, Chengdu, Hangzhou, Guangzhou, and Zhuhai as national industrial bases for advancing overall software industry development [11]. Since the establishment of the Dalian Software Devel-

15、opment Park in 1998, the output value of the software and information service industry there has developed rapidly, achieving a compound growth rate exceeding 50%. In addition, from 1998 to 2005 sales revenue has grown f

16、rom US$25 million to US$1.28 billion. The 2005 report [13] on the development of the Dalian software and information service industry pointed out that the 2005 industry sales revenue increased by 43% compared to 2004, ex

17、ceeding national average growth for that year. Simultaneously, Dalian City was officially named the first and only “Inter- nationalized Software Industry Model City” in China. Taken* Corresponding author. Fax: þ886

18、4 2632 4044.E-mail address: cgjan@pu.edu.tw (C.-G. Jan).Contents lists available at SciVerse ScienceDirectTechnology in Societyjournal homepage: www.elsevier.com/locate/techsoc0160-791X/$ – see front matter Crown Copyrig

19、ht ? 2012 Published by Elsevier Ltd. All rights reserved.doi:10.1016/j.techsoc.2012.01.002Technology in Society 34 (2012) 163–173development. SD is an optimal methodology for con- structing a dynamic model, as it leads t

20、he direction of thinking, focuses discussion, expands the scope of discussion, and enhances the quality of policy formulation. ? None of the recent studies of the Dalian software industry have conducted a comprehensive a

21、nd in-depth exploration of the industry using the SD methodology. Therefore, our study applied SD causal loops to collect information and data for discussing the cluster effect on the development of the Dalian software i

22、ndustry, and to construct the dynamic model of the software industry development.3. Analysis of the software industry cluster in ChinaThe scope of the industry cluster effect can be organized in the following ways: singl

23、e city, region, country, or an industry network that includes neighboring countries [36]. A software industry cluster includes allied manufacturers in the same industry that form and relate to the upstream and downstream

24、 value chain for its final product, manu- facturers of complementary products, financial institutions, and manufacturers in related industries. In addition, the government provides organizations of professional training,

25、 education, information, research, and technology support to accelerate development of the domestic industry. The industry cluster thus is comprised of a group of geographically neighboring and mutually correlated enterp

26、rises and corporations within a certain field. These enterprises are linked via substitutes, complementarities, or supply-chain relationships with upstream and down- stream vertical division of labor [14,23]. This study

27、aims to add further understanding by analyzing the development structure, process, and indus- trial characteristics of the software industry, and to use the research results as the foundation for constructing a dynamic m

28、odel. In the following sections, the authors describe the development process, scale, and features of the Chinese and Dalian software industries, and the roles played by the Chinese government in developing the soft- war

29、e industry.3.1. Software industry development process and scale inChinaThe development of the Chinese software industry dates back to 1978, and today has achieved some notable successes. For example, the industry’s sales

30、 volume increased from US$55 million in 1999 to US$486.5 million in 2005, nearly 40% annual growth. Software exports increased from US$2.5 million in 1999 to US$35.9 million in 2005, representing growth of nearly 15 time

31、s over 6 years [13]. This process and scale of development is summarized below.3.1.1. Software industry development process China considers the software industry not only a major information technology (IT) sector, but a

32、lso one sofundamental and strategic to its economy that it is directly related to national politics, economy, and society. Further- more, China has prioritized the development of the IT sector by comprehensively applying

33、 IT to all societal and economic areas, and adopting an information process to foster industrialization capable of accelerating the advancement of the software industry. According to China Labs.com [37], the development

34、of the software industry chain can be divided into four major phases:(1) Emerging Phase (1970s to late 1980s). In 1978, China established the State Bureau for the Computer Industry, indicating that its software industry

35、had officially emerged as a world power. Thereafter many related companies and corporations were established, including China Computer Service Co. (predecessor of China Software), China Computer Software Co., China Compu

36、ter System Integration Co., China Computer System Integration Company, etc., laying the foundation for the long-term development of the Chinese software industry.(2) Initial Phase (early 1980s to late 1980s). During the

37、early 1980s, China began pursuing combined scientific and economic research, and with the acceleration of economic openness, numerous software industry associations appeared. Through the late 1980s, the Chinese software

38、industry catered to market and customer demand, and then made major strides into economic reform.(3) Entry Phase (early 1990s to early 2000s). During the early 1990s, to maximize cluster advantages, China modeled its ind

39、ustry development after that of Taiwan. It began establishing software parks, and implementing cluster development. A series of major construction projects were executed, followed by related software applica- tions. In 2

40、000, the State Council of China issued the No. 18 Document, “Notice on Promoting the Continuous and Healthy Development of the Real Estate Market” after which the Chinese software industry realized an improved environmen

41、t and larger development space. The Chinese software industry had entered the full- scale development phase.(4) Developing Phase (2000 to present). Since 2000, China’s software enterprises have entered the network soft-

42、ware phase in which major Internet and software network sales and operations emerged, and software exports gradually increased. The number of network firms sharply increased, and they introduced network software that att

43、racted widespread approval. Addi- tionally, with stock market growth, many Chinese software firms have sought listing on the U.S. stock markets, thus attracting overseas investment. Since 2003, numerous multinational com

44、panies, including IBM, Microsoft, and Oracle, have invested in the Chinese software market to reduce their operating costs, customize their products and be close to the Chinese market. The huge Chinese software market ha