Theoretical research on life cycle of industrial cluster

As a platform of product creation and gaining interests for SMEs, industrial cluster is in the vital position of regional economic development. In Zhejiang province, the industrial cluster occupies the 60 percent of the total industrial output value, which becomes a shining point of the economy. Theoretically, industrial cluster has its own development cycle. In other words, the law and features of all phases in the cluster will be understood by index judgment of the Cluster development, which be divided into four phases of Embryo, Rapid Growing, Maturity and Recession. Finally, this paper analyzes the influence factors affecting the transition of each phase.