The Research On Product Life Cycle And The Climbing Of "Value Chain"

The climbing of value chain is always a serious problem disturbing the development of economy in our country. Traditional trading theories concluded that perpendicular division in developing countries is subjected to monopolistic sections in developed countries that have core technique. The south enterprise could only take part in the production of goods in the sections which have comparative advantage in cost and are not professional in core technique. This theory obviously has certain limits: The south could not benefit from later-developing advantages and trading. This text mixed perpendicular division theory with product life cycle theory, carried on the classification in the value chains in different life cycles; analyzed the enterprises' behavior in different value chains using endogenous growth theory, Which broke the assumption that South countries could only accept the technique transference from developed countries and has suggested a new idea for the climbing of value chains in our country.This text has revised the product life cycle theory, with the conclusion that technique would not transferred with the transference of product market and the core technique would be monopolized by developed countries all the time.The traditional theory in industry transference is replaced by the trading method with products inside division. If developing countries don't carry on the research and development, they could only product at the button of the value chains in non-core sections and could not benefit from the trading, even worse, the trade conditions would be worse. This text divided the value chain of corresponding period as follows: New industry value chain, value chain in growth period and value chain in mature period; according to the characteristic of technique and market needs in different types of value chains, the text analyzed the economic behavior of enterprises in different value chains.After the research, we found out that:â‘ Because of the huge technique margin, the production cost advantage of south is insignificant when compared with cost of research. As a result, without the scare of need and production, the value chain in new industry in south nations can only take part in the non-core technique sections in which physical labour is concentrated and the climbing of value chains would not happen initially.â‘¡In the growth period, the climbing of value chain depends on the balance of market structure and the benefit after monopoly. When the benefit after monopoly is definite, the highly dispersion of market structure usually hinder the innovation behavior of enterprises in lower of the chains. Thus, when market structure is stable and the needs of domestic market in is immense, it would stimulate the climbing of value chains.â‘¢The value chain in division of labor system in mature period , the income difference between the south and north countries with the different need in production or unfinished production may lead to the result that the production or unfinished production would not bring into the value chains worldwide. Therefore, to catching up with the value chain quickly, we should analyze the technique characteristics, market need and market structure of value chains in corresponding period.