2. The Spatial Distribution of Industries: From “Massive Economic” to Industrial Cluster

The transition from “massive economic” to industrial cluster is conducive to improving economic efficiency by optimizing spatial allocation of resources. Comparing mechanisms between “massive economic” and industrial cluster, this paper expounds requirements of this shift in the Yangtze River Delta. Through analysis of industrial concentration degree, industrial Gini coefficient and spatial autocorrelation index, we investigate characteristics of spatial distribution among different industries (high-tech, mid-tech and low-tech industries) in the region. Specifically, mid-tech and low-tech industries are transforming significantly from “massive economic” to industrial cluster while high-tech industries are still in the emerging stage of agglomeration. Multi-regression model is used to test determinants of industrial spatial distribution, the results show that in Yangtze River Delta, natural resource dominates the spatial distribution of resource-oriented industries; for high-tech industries, transport infrastructure favors industrial agglomeration resulting in these industries clustering in principal cities; for the mid-tech industries, most factors have close impacts on industrial agglomeration causing well-distributed feature in the region; for low-tech industries, industrial agglomeration is significantly determined by market size, which generates an uneven spatial distribution. To optimize industrial distribution, integrated regional economy should be further encouraged in the Yangtze River Delta.