| Seedling industrialization was advanced on the national seedling conversazione in Mar. 1993.Since then, A brilliant achievement has been gained in practice, but it's theoretical basis study has not been carried through.The practice must be directed by theory and would be promoted by the deepening and innovation of theory.The theoretical basis is discussed in this article, as a result, Industrial economics, organizational innovation & institutional transformation, scale econom3, labor division and coordination, interest mechanism andtransaction cost--these are the theoretical basis of seedling industrialization--is brungforward.The SCP (Structure-Conduct- Performance) model of Industrial economics is the basal frame of seedling industrial organization analysis.SCP model is applied to seedling industrial organization analysis in Gansu.The results indicate that the market structure of seedling industry in Gansu is competitive extremely which is represented by its lower concentration ratio, less product differentiation, lower barriers to entry and exit: and weak capability of the market conduct.As a result, the efficiency of resource allocation and scale structure is low; there is some structural conflicts on the coupling bet |