Yangtze River Delta Manufacturing Upgrading Research

This paper, began with the influence of global sourcing shedding onmanufacturing industry of Yangtze River Delta, by analyzing the cause and currentsituation of global sourcing, current situation and advantages of manufacturingindustry in Yangtze River Delta, the impact of the strategies chose by buyers onYangtze River Delta’s manufacturing industry, led to the correlation analysis betweenglobal sourcing and Yangtze River Delta’s manufacturing industry, then takes shortrun and long run as two perspectives. In the long run, this paper selected the exportvalue of Shanghai’s high technology product and processing trade as independentvariables, main business revenue of communication equipment, computer and otherelectronic equipment manufacturing industry as dependent variable, simulated thequantitative relation between export value induced by global sourcing and mainbusiness revenue of local manufacturing industry, that is on average, holding otherconditions constant, with one unit change of the export value of high technologyproduct, the main business revenue of communication equipment, computer and otherelectronic equipment manufacturing industry will be changed by45.522units, thatmodel reflects93percent of the reality; with one unit change of the export value ofprocessing trade, the main business revenue of communication equipment, computerand other electronic equipment manufacturing industry will be changed by38.419units, that model reflects94percent of the reality. In the short run, this paper selectedthe export value and output value of Shanghai’s automobile components, and took theformer as a percent of the later to make monthly analysis, during the selected timezone, although the ratio expressed a certain level of variation, the general trend tendedto be stable which give support to the tight connection between automobilecomponents’ export value and automobile manufacturing industry’s output value, thenexplored the correlation between souring and local industry’s development, raisedmany topics for our country’s automobile manufacturing industry.After that, this paper raised the discuss of bottleneck existed in the upgradingprocess of Yangtze River Delta’s manufacturing industry from the position on thevalue chain created by international division of labour, technology content of output,homogenization competition and supporting measures, then pointed out the mainproblems lie in the lower position of value chain which lead to the lower profit, therising labour cost, insufficient innovation, lower transformation rate of innovationachievement and the evident homogenization competition during the region.Finally, according to the situation and problems discussed above, upgradingstrategies are put forward from self-dependent innovation which include capital input,talent cultivation and system innovation, vertical integration of supply chain whichinclude industry cluster and synergistic effect, business process of global sourcingwhich include risk prevention and information sharing.