Industrial Competitiveness Theory Research

Whatever inter-firm and regions, their competition is increasingly taking the form of industrial chain competition. Based on practice, it is easy to find that some of firms domestically and abroad have been implementing competitive strategy of industrial competition-oriented. And we also find that there is significant difference of competitiveness of the same industrial chain in different regions.However, how to explain this difference or what’s the sources of industrial chain competitiveness (ICC), which theoretically need to develop. ICC is different from industry competitiveness; it focuses on not single industry, but the whole competitiveness of industrial chain. Therefore, ICC has its own distinct sources.What are the sources of ICC? This is the paper’s research question. Industrial Chain is a concept related to multi-agents and multi-layers including firms, local government, industries and locations etc. Therefore, to analyze the ICC from the perspective of industrial chain governance is practicable and feasible.Industrial Chain includes three basically dimensions:division of labor, organization arrangement and industries constitutes. Industrial chain is a form of division and coordination of industries and space. From the angle of division, industrial chain is a form of improving productivity by division. To get dynamic change of productivity and cost structure through specialized economy and the Law of Economy in Organization. The reasons of the division enlarge is the constantly increasing of linkage density and the market scales. From the angle of coordination, to emphasis the importance of evolving of industrial organization and articulated industrial structure in order to produce dynamic efficiency.Based on the above concept, the paper proposes that the formation of ICC is a dynamic process of optimizing industries constitutes and industrial organization model. And the process is implemented by firms and local government’s coordinated action:one is to choose and position industrial activities, which are helpful to knowledge spillover between inter-industries, endogenously promote industrial chain division of labor, and forming the industrial chain rents. Two is to change industrial chain governance model so as to protect industrial chain rents. It not only can improve the income levels of the region, but promote the competitive degree of micro-economic activities in open economy.The paper precedes the empirical analysis based on the electronic equipment industrial chain of10-provinces from2000-2007year.Industrial chain is a kind of form of division of labor and coordination. To division of labor, we emphasi on the competitive behaviors; To the coordination, we emphasi on the governance behavior.ICC is a dynamic process, from the angle of co-development between country and firm, of choosing and positioning industrial activities which aims to generate the industrial rents and increase national income through industrial chain governance.the empirically results show that industrial chain the division of labor, micro-organization mode of industrial chain activities and space agglomeration of industrial chain activities, and related variety of industrial structure have active impacts. And Under the conditions of low government intervention, compared to share network organization mode, vertical network organization has a better improvement of ICC.Finally, the paper proposes some thinking direction of designing policies.