A Study On Upgrade Of China's Manufacturing Industry Cluster In The Modular Production

Since the reform and opening, China is committed to the development of export-oriented economy. With the emergence of a large number of small and medium enterprises and the formation of industrial clusters, Chinese manufacturing begins to rise rapidly. However, due to historical and institutional reasons, there are many problems existing in Chinese manufacturing industry clusters, leading to long-term existing in the low-end of global industrial chain and value chain, low profitability, being locked development space. So it is urgent for industrial upgrading.The theoretical basis of this paper includes international economics, industrial economics and organizational behavior, and theoretical analysis and case studies are combined. This paper discusses the upgrading path of Chinese manufacturing industry cluster from strengthening the cluster innovation and actively embedding in the global value chain, indicating the probable problems encountered in the upgrade process combined with China's industry clusters of cottage mobile phones.First, this paper describes the related theories on the modular production and the industrial clusters upgrading, and analyzes the links mechanisms between them. On the basis of the derivation of related mathematical models, this paper proposes that the modular production will lead some changes on the organization structure and the faced market competition of industry clusters, which will make the competition aggravated and the formation of market power in a certain degree. Those changes will lead to the development of Chinese manufacturing industry clusters in a direction in favor of innovation and upgrading.Secondly, on the basis of analyzing the status and characteristics of the modular production of China' manufacturing industry clusters, the paper proposes two important ways to upgrade china's industry clusters:the cluster innovation and embedding in the global value chain. The cluster innovation has apparent advantages over the behavior of a single enterprise, and the modular production further strengthen this advantage. In addition, the upgrading of industry clusters is no longer a isolate event in the modular production, and industry clusters must embed in the global value chain actively, and only in this way can industry clusters upgrade from the low-level part to the high-level part in the global value chain.Thirdly, combining with China's "cheap-copy-mobile" industry cluster, this paper proposes that there is a big difference on the technological progress order and the upgrading path between the industry clusters of developed countries and those of developing countries because of the too large technological gap. So China's manufacturing industry clusters should gain stronger market competition by reducing production cost in the prophase of upgrading and improve the product quality and property according to the actual demand of market in the late phrase. Accordingly, China's manufacturing industry clusters should base on "learning by doing" and follow the order of from the simply duplicative imitation to the completely independent innovation, and ultimately the entire upgrade of industry clusters.Based on the above analysis, this paper puts forward some suggestions combining with China's specific national conditions and hopes to realize the upgrade of China's industry clusters giving full play to the advantages of modular production.