On evolving route of clustering based on division of labor

Evolution of modern industrial clustering is analyzed herein from the perspective of specialized division of labor in this article. The author regards that one of the major reasons of formation and development of clusters is the deepening of specialized division of labor and expansion of transaction network. Deepening of division of labor has promoted development of enterprises; along with the expansion of transaction network, all types of transaction fees increase sharply, in order to reduce transaction fees and increase progressive remunerations, coordinated division of labor deeps further, clustering emerges as times requires and is developing along development of division of labor. Vice versa, clustering development has also furthered the deepening of specialized division of labor and expansion of transaction network.