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On the global value chain, the regional innovation system and industrial upgrading Review

Author: LiWeiWu From: www.yourpaper.net Posted: 2010-06-30 02:02:39 Read:
Paper Keywords: global value chain regional innovation system of industrial upgrading
Abstract: China's coastal areas industry overall is curing the low end of the global industrial chain in the international division of labor in the region in the global division of labor is very important to the enhancement of the high-end chain. This paper attempts to global value chains and regional innovation system perspective on how to promote industrial upgrading summarize the literature.
I. Introduction
At present, China's coastal industrial prevalence of low-level plus industrial and high proportion of processing trade, the scarcity of high-end industrial and export of high value-added products is more structural problems. Many so-called high-tech products did not produce high value-added, high-tech enterprises in these areas is basically not own intellectual property rights and core technology is still low in the low-tech, labor-intensive production processes and global value chains end. Thus, the foreign-oriented economy dominated by the process of industrialization, China's coastal economy there is a high dependence on foreign capital, technology and market influence by changes in international economic relations and the RMB exchange rate, coupled with plaque lack of own resources and environmental capacity is limited, resources and environmental pressures facing the economic development and labor constraints continue to increase (Yong, 2007).
In this new situation, China's coastal areas to comprehensively implement the scientific concept of development, continue to play a vanguard role, must continue to nurture and strengthen the capability of independent innovation, to get rid of economic growth on the international market and the traditional path the cheap resources over-reliance on the industrial growth and industrial expansion to upgrade substantive content of technology and processing, positioning to enhance the high-end industry chain in the global division of labor (Yong, 2007).
Global value chains and industrial upgrading
Global value chains for the realization of the value of goods or services connected to the production, marketing, global recovery process across the enterprise network organization involving production from the collection and transportation of raw materials, semi-finished and finished products and distribution, until the final consumption and recovery of the whole process. It includes all participants and production activities of the organization and its profit distribution. The spread in the global value chain enterprises from the production design, product development, manufacturing, marketing, sale, consumption, after-sales service, the final recycling and other value-added activities (Hui 2006).
From the perspective of global value chains, industrial upgrading is divided into four types: process upgrading, production efficiency; product upgrades, product complexity, increase the unit value; functional upgrade that occupy more value-added sectors, such as from OEM to ODM, OBM's leaps and bounds; chain upgrade, namely the use of new industries in the original industry into an advantage. The transaction cost theory of global value chains identified four governance model: market, network, quasi-hierarchy, hierarchy. According to the complexity of the transaction in the market is divided into market, modular, the five governance model of the relationship, capture and hierarchical classification methods, including network-module, the relationship; trapping style similar to the quasi-hierarchical ( the Viewpoint, 2007). Our Party (2007) pointed out that the local industry cluster upgrade path for buyer-driven global value chain, generally along the process to upgrade a product upgrades a feature upgrades a chain conversion trajectory. Generally speaking, technology upgrades and the upgrade process will be relatively smooth upgrade path above process, time-consuming and not too long from product upgrades to conversion is much more difficult, mostly by the buyer-driven value chain governance industry The cluster upgrade is blocked here. Producer-driven value chain governance of industrial clusters generally along upgrade a product upgrade process chain conversion upgrade. Generally speaking, the the functional upgrade process is relatively easy, a relatively short time, for product upgrades and process upgrading, much more difficult, most of the industrial clusters also blocked.
Third, the regional innovation system and industrial upgrading
Regional innovation system is another way to promote industrial upgrading. Our Party (2007) that innovation is the fundamental driving force of sustainable development of industrial clusters, but also to promote the fundamental driving force for upgrading industrial clusters, the fundamental driving force of the competitive advantage of industrial clusters from a static to a dynamic competitive advantage. The formation and development of innovation networks is a fundamental condition of the industry cluster can continue to innovate and to obtain and maintain a dynamic competitive advantage. The so-called static competitive advantage is the early regional development within the existing conditions in the region and the combination of certain elements and cumulative regional development advantages (such as the region's natural resources and good conditions for physical capital and abundant labor force and low price) but this advantage is temporary, as the development of these advantages will be lost, for example, China's abundant labor resources, With economic development, labor shortages, labor prices started to rise. Dynamic advantage is that all actors in the region, can activate the resources of the region and beyond, each innovation, and the various actors through effective cooperation, collaborative innovation, and thus promote the region as a whole system of innovation, so that the entire region a sustainable competitive advantage. The fundamental goal of upgrading industrial clusters is to get the competitive advantage of the dynamic industrial clusters. Dynamic achievement of competitive advantage is the result of the formation and development of regional innovation network, upgrading industrial clusters fundamental focus is to establish and improve regional innovation network.
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