Regional Comparative Research On China’s Software Industry Labor Productivity Growth

As an eternal theme of economic activities, the importance of labor productivity is self-evident, especially in China, which is going through the transformation of the economic and industrial upgrading, labor productivity growth should get enough attention. As economist Cheng Siwei said in the latest session of CCTV Financial Forum, we should transform GDP growth worship into the worship of labor productivity.Software industry, as the core of the information industry, has become an important force to promote the economic globalization and the transformation of business model innovation. It has become a strategic leading industry, which effect national competitive mostly in21st century. As a capital and talent intensive industry, labor productivity directly decides the enterprise whether have the core competitiveness and sustainable development ability. China’s labor productivity in software industry has been experiencing decline in growth after more than twenty years’ rapid development; many areas appear even negative growth. How to effectively improve each area’s labor productivity growth will be the problem which needs to be settled.Based on the comprehensive analysis of the current situation of the software industry in China, on the basis of combination of scholars both at home and abroad related research results, using data envelopment analysis (DEA) method, selecting the panel data in29provinces,6large software export bases and11software parks, the paper made an empirical analysis of the software industry labor productivity among different regions in China from2006to2010. Through the labor productivity fourfold decomposition model, it has analyzed the main factors that influence area labor productivity growth, and put forward policy suggestions to improve the labor productivity growth.Three main conclusions of the studies are:(1) Software companies in China need to improve its position in the value chain through the unceasing innovation input and brand strategy, strengthen the competitiveness of the international market;(2) In eastern coastal areas, the traditional advantage weakened gradually, the growth of Labor productivity is lower than inland provinces and cities. The distance of Labor productivity among software export bases and software parks is also more and more big;(3) The low technical efficiency and insufficient per capital strength restrict China’s software industry labor productivity growth, which are also the direct factors widening differences in regional labor productivity. The software enterprises have to raise the level of management and resources allocation efficiency. Local governments should optimize the industrial park layout, expand the financing channels of the software industry, and strengthen the high level software talents and efforts to introduce.