Division of labor, transaction, and generic technology supply of industrial cluster

The developed division and specialization exists in the industrial cluster between enterprises. The transactions of intermediate products between upstream and downstream enterprises of the same product are so frequent that the competitiveness of the final product enterprises in the consumer market depends on the specialization and cooperation of the upstream enterprises. Therefore, the division of labor is the basic force in the development of industrial cluster division. The increased transaction costs, resulted from the increasing transaction amount of intermediate products and consumer trades, request efficient market organization of industrial cluster in the developing process of produce, to reduce the transaction costs in various kinds of intermediate products and consumer products trading activities. As a product of organization innovation, Professional market reduces the cost of information and transportation during trade, in this way, it promotes the deepening division of labor between enterprises. Due to its externalities and spillover, generic technology determines its special properties as public good, and it may lead to the supply failure in the perfect market. Its Externalities may also lead to technological collaboration in the prior period of competition, intense competition in the product market, which enable organizations success.