A Study Of China's Local Industrial Networks Upgrading Embedded In Global Value Chain

With the development of globalization, local industrial networks characterized by geographical agglomeration of economic activities are being embedded in global value chain. It is unlikely to understand the interregional dynamic industrial restructuring if regional economic advantages are seen only from internal factors. However, if local industrial networks are placed in global economic system, a new picture of regional industrial developments will be in sight. Therefore the global linkages are equally important to regional economic development as local industrial linkages. Nevertheless, the literature on local industrial networks, mainly focusing on the local sources of competitiveness coming from intra-network vertical and horizontal relationships generating collective efficiency, often neglects the increasing importance of external linkages. Hence this paper will be focused on analyzing the upgrading of China's local industrial networks by stressing global linkages as well as local linkages.This paper first analyzes the reasons and background of China's local industrial networks embedded in global value chain; then illustrates pressure of upgrading facing China's local industrial networks in intense global competition; based on that, the paper formulates a theoretical framework of China's local industrial networks upgrading and analyzes its mechanism. It holds that the momentum of upgrading of China's local industrial networks embedded in global value chain which is originated from two aspects: the "innovation ability", coming from local linkages, is the "original force" of local industrial network upgrading; global linkages, especially leading companies' governance in global value chain, is the impetus or hindrance to upgrading of local industrial networks; next, the paper explores briefly the ways of China's local industrial network's upgrading. Finally, the paper makes a case study on Pudong Integrated Circuit (IC) local industrial network to explain the network operation modes of IC industry and describe the global competitive pattern of Pudong IC industrial network embedded in the Producer-driven value chain. The paper analyzes innovation ability in light of local linkages in Pudong IC industrial network, inquires into the great influences in upgrading of Pudong IC network of the leading companies in Silicon Valley, America and Xinzhu, Taiwan in terms of global linkages and suggests possible ways of Pudong IC industrial network upgrading.In the part of theories, based on economic geography and by adopting principles in regional economics, industrial economics, sociology and management science and network analysis and value chain analysis, the paper probes into upgrading of China's local industrial network embedded in globalization. In the part of case study, Pudong IC industrial network is chosen as a typical export-oriented industrial network embedded in Producer-driven" value chain for two reasons: being highly integrated with the global value chain and faced with greatest pressure of upgrading, export-oriented local industry networks deserve to be further studied; little research has been done in upgrading of local industrial networks which are embedded in "Producer-driven" value chain. The part of case study is based on half a year field investigation. In order to be accurate and typical in information, the author takes 1-2 samples in every link of IC industry. By interviewing 28 senior managers and executives, the author has investigated 26 companies and institutions and large amount of first hand data obtained.The paper is divided into two parts. The first five Chapters are concerned with theories. Chapter Six is with case study.As an introduction, Chapter One first proposes the key question of the paper, then briefly reviews the latest developments in related research at home and abroad, explores the significance of the selected title and the research method, and finally, based on a systematic summary of literature, suggests the basic framework of research.Chapter Two defines three groups of conceptions...