Abstract Industry cluster, which has been developing internationally over the past century, is a hot topic in the field of economic geography and industrial economics. Asymmetrical power relation, which is a distinct characteristic of industry clusters, plays an important role in the evolvement of industry clusters. Technology power has more contribution to the development of industry clusters in the era of knowledge-based economy. Using a case study of Shanghai automobile industry cluster, this paper will focus on the technology power and its functions. It highlights four points which are, firstly, the core in asymmetrical power relationships; secondly, technology power; thirdly, the evolution of industry clusters with the influence of technology power. The investigation is based on interviews and questionnaire. The result shows that that the power structure is asymmetrical in Shanghai automobile industry cluster because the more powerful members in a power network can have great influence on other members by means of technological blockade, technological standards, technological aids and technological demonstration. Therefore, the industry cluster is formed and developed with the corporation and support between the members in the industry cluster. Furthermore, the leading technology companies are able to decide the companies' locations, the network members and accelerate the innovation. Thus, they can be the core in the network because of having technological power. The industry clusters will evolve relied on the lead of leading technology companies and the close corporation of all the members in the network. It also indicates that the study of technology power is great necessary for regional development.
2010, Vol. 25 
