Industry Based On The Three-chain Yili Selection And Upgrading Of Research

As one of the most important methods accelerating the economic development in undeveloped countries and areas, the industrial selection and upgrading has been being a focus point in theory field for a pretty long time and was practiced widely in lots of Chinese provinces.Writer took part into many research projects relative to area industrial selection and upgrading since 2003. Through those practice, writer realize that the present theory of industrial selection and upgrading which takes the whole industry as selected object is facing lots of unsolvable problems, such as rather similar industrial structure between different areas, disappointing performance or impracticability of the selected industries, inefficacy in selecting puny strategically industries and conflicts between company behaviors and government will.Generally speaking, defined by the usual rule of industrial development and the present economic situation of the selector, the number of optional industries usually is not too much in certain given time. Therefore, it is not difficult to get the selected results when viewing the industry as a whole, but the question still exists. Evening if certain area has got the selected industry, it still face the problem on how to develop the industry, because there are no countries or areas which is able to overcome the entry obstacle and hold advantages in all links or subsections in a selected industry due to the complex internal structure. The widely observed situation of industrial internal links spreading in different countries or areas can be view as a proof, which is shaped by the global vertical division of labor. So the more important thing is make the selection among the internal different links and subsections of certain industry.Once push industrial selection and upgrading into the industrial interior, it will be the first of all to solve the problem on how to analyze the internal structure of certain industry. Usually the different links and products in the industrial interior are not independent to each other; instead they have the relationships of coexistence and competition just like a chain. Then the following step is how to analyze the major characters of the links and products which composing the chain together.For assure the micro-basis of the selected results, the article first analyses the basic logic and variations a company should abide and utilize when selecting industry. Then, the article gets the basic logic and variations which an area should abide by and utilize when selecting industry according to the company behaviors. The variationsutilized to describe the industrial situation can be concluded into industrial character, technological character and value character. If viewing the industrial internal structure as chain, then industrial character, technological character and value character can be developed into industry chain, technology chain and value chain to describe the basic economic and technological characters of each links and subsections inside certain industry. Industry chain describes the demand situation, investing factors structure, market structure and relative policy or law of each link and subsection inside certain industry; technology chain describes the all technologies utilized by each links and subsections; technology chain describe how the total value created by certain industry as a whole distribute among different links and subsections.By analyzing the "three chains", the information of industrial character, technology character and value character of each link and subsection will be available. Such information can help a country or area understanding its entry cost and expected return in different links and subsections. Therefore a country or area can balance the entry cost and expected return of different links and subsections to know the different attraction.But it is still not enough to get the final selected results, because the comparative competitive ability can not be ignored. It is also usual that a link or subsection with high attraction may not be the field where a country or area is competitive, or a link or subsection where a country or area is rather competitive is not attractive. Therefore the final selected results still depend on balancing the attraction and comparative competitive ability.On basis of above logic, the article build a "three chains and one ability" method to solve the problem on how a country or area make industrial selection and upgrading in the interior of certain given industry. For convenience of practical operating, the article utilize the analytic hierarchy process to structures an econometric model of "three chains and one ability" method. In the case analysis, the article uses the model to show how Shanghai selects the preferentially-developing fields in the biomedical engineering industry.