Abstract The marriage of cultural industry development and regional regeneration patterns can further develop local unique culture resources and enable effective interaction between culture and economy, and promote continuous innovation and learning, in order to achieve the effect of economic benefits derived by the culture itself. This research studies the ceramics industry of Yingge town, using qualitative interviews with factories and stores to see whether they, in the evolutionary process, played the role of actors leading the industrial and economic development. Along with the fast development of knowledge-based economy, this study, thinking in terms of policy perspective, by means of historical support, together with the literature review analysis methods, examines as to how to improve industrial development, then uses PORTER 6 competitive force analysis as a basis of the current economic and institutional analysis. The results show that the policy authority failed to generate mutual trust with the local government, and local officials had insufficient identification with the ceramics industry; therefore, they are unable to widely establish the economic benefits for these cultural industries and the regional regeneration. Secondly, in light of marketing concepts, these factories and stores still can not upgrade themselves to international industry level. This study suggests that these two findings can be used and put into the focus for future improvement. It is also hoped that this study can serve as a reference for relevant authorities concerning sustainable management of local cultural industries.