Study Of The "Internet+" Impact And Differences Of Agglomeration Across Manufacturing Industries

The operational mechanism of industry agglomeration changes with economic transformation and upgrading,which are caused by development of the internet.During the new industrial revolution,the traditional industrial value chain has been restructuring,the ranges of intermediate products are increasing,the production processions are more and more specializing and production organization modes are facing a subversive change.Under this new circumstance,it's essential to study on the further necessity of industrial agglomeration and forces which are causing the changes.Different industries have different responses to the internet technology in terms of both depth and breadth given to the industrial heterogeneity.It's significant to take the differences among industries into consideration when studying the agglomerating-diffusing of manufacture.This paper analyzes the agglomeration-diffusion patterns under the ?Internet+? effect theoretically from perspectives of the demand,the supply and the relationships between them.With the panel data during 2003 to 2014 from 30 provinces,this paper use empirical method and theoretical analysis to draw a rather comprehensive conclusion to the differences of agglomeration across manufacturing industries under impact of the internet.As the studies show,Internet technology combines isolated machines into automated facilities,which helps to achieve the communication between modules and even between industries.The users' individualized demand gives the manufacture industry an orientation in which specialization and service lead to the agglomeration-diffusion patterns.The industrial characteristics cause four kinds of agglomeration-diffusion patterns: always agglomerating,agglomerating after its diffusion,diffusing after its agglomeration,and always diffusing.These also cause the differences of the agglomeration turning points across industries.The turning points of diffusing-after-agglomerating industries are between 20-30% of the internet penetration rate;while for most of agglomerating-after-diffusing industries,their turning points are around 40-50%.In conclusion,the internet causes specialization of manufacture industries and then leads to inter-industry agglomeration,intra-industry agglomeration and intra-industry diffusion.The intra-industry specialization leads to agglomeration or diffusion while the inter-industry specialization causes the diffusion of the industries with less general products.When the product of an industry is of simple procession,its integrate companies and manufacture companies tend to agglomerate.And for those with more complex manufacturing processions,they tend to agglomerate as well.Because they adopt modularization,and industrial agglomeration can help to improve the integration and innovation and competitive edges.But the module producers can choose their companies location based on comparative advantage which drive the industry diffusion.The specialization and cooperation blur the lines between industries,some industries' product become more and more alien,their companies tend to locate around their serving industries.These show as inter-industry agglomeration but intra-industry diffusion.