Michael Porter pushed the theory of industrial cluster to a new peak. He re-examined the formation mechanism and value of industrial clusters from the perspectives of competitive advantage, value chain, economic efficiency and flexibility created by organizational change. Porter's research on industrial clusters is combined with his research on national competitive advantage. In the book "National Competitive Advantage" completed by 1990, he made a concrete comparative analysis of the national competitive advantage through the competitive characteristics of industrial clusters between different countries and regions. He believes that the state is only the external environment of enterprises, and the government's goal is to create a suitable environment for domestic enterprises. Therefore, the key to evaluate a country's industrial competitiveness is whether it can effectively form a competitive environment and innovation. Porter published the article "Cluster and New Competition Economics" in 1998, systematically put forward the theory of industrial cluster in new competition economics, and explained the meaning of industrial cluster: "Cluster is the phenomenon that interrelated companies or institutions in a specific industry gather in a specific geographical location. Cluster includes a series of upstream, middle and downstream industries and other enterprises or institutions, which is very important for competition. They include suppliers of special raw materials such as parts, equipment and services and suppliers of special infrastructure. Clusters usually extend down to downstream channels and customers, as well as manufacturers of complementary products and companies with industry-related skills, technologies or common raw materials. Finally, the cluster also includes the government and other institutions (such as universities, standard-setting institutions, vocational training centers and trade organizations) to provide professional training, education, information, research and technical support "(Porter M E, 1998). Porter believes that clusters usually occur in specific geographical areas, and the geographical concentration of industries occurs because of geographical factors. Due to geographical proximity, clusters can improve productivity and innovation benefits and reduce transaction costs. The industries that a country has a competitive advantage in the world tend to be concentrated geographically, usually in certain cities or regions. Porter believes that the scale of a cluster can be connected into a network from a city, a state, a country and even some neighboring countries, and the different forms of the cluster depend on its depth and complexity (Porter me, 1998).

Cluster is the development trend of industrial regional agglomeration. Industrial cluster refers to the spatial agglomeration of many enterprises with different scales and grades and various institutions, organizations and other actors related to their development in a certain region, which represents a new form of spatial economic organization between the market and the level. It is a new bright spot in the development of world economy. It can not only become the dominant factor of regional economic development, but also become a new force to improve the international competitiveness of a country's industry. As a form of industrial spatial organization that creates competitive advantage, industrial cluster has incomparable group competitive advantage and scale benefit of agglomeration development. From a global perspective, clustering has become a very common phenomenon, and most internationally competitive industries are clustered. In today's economic globalization, the development of industrial clusters has become the trend of global economic development, and industrial clusters constitute the basic spatial framework of today's world economy.

As an open system composed of industry, population, towns, information, infrastructure and other elements, industrial cluster maintains its existence through the mutual integration of internal elements and frequent exchange of materials, energy and information with external systems. In the horizontal and vertical connection, industrial clusters constantly reflect the influence and function on the regional economic system, that is, they constantly reflect the integration function of internal factors and realize the self-organization and orderly development of their own structures. Porter pointed out that once a cluster is formed, a self-reinforcing process will promote its growth (Porter M E, 1998). The evolution of industrial clusters is rooted in the interaction of spontaneous behaviors of all participants for survival and development opportunities, and is determined by various forces participating in competition. In other words, the development of industrial clusters is the evolution process of interaction and self-organization of various elements of regional economic system. All kinds of properties, characteristics and operating mechanisms in the evolution of industrial clusters are directly related to this. Various subjects and elements in the cluster are both competitive and cooperative, both open and closed in economic activities. Through interaction, the whole system continues to split and integrate, leading to disorder and order, from one state to another, from balance to breaking balance and then to new balance.