Wood Processing Industry Development System Innovation Research

Forestry plays an indispensable role in the development of human being. It's not only the principal part of the ecological construction, but also the sustainable fundamental industry and public utilities of the economic society. The State Council pointed out in A Decision on Accelerating the Forestry in 2003 the strategy of "Forestry Structure Optimization and Industry Improvement". It's elaborated in three aspects: first, to accelerate the escalation of forestry structure; second, to enhance the instruction, adjustment and control of forestry development; third, to extend the openness of forestry. The full use of domestic and overseas markets and sources is very necessary to improve the forestry. The new strategy of forestry development leads the research to a new field. It impacts a lot on forestry development for the state to enact effective policies and impose effective controls. Therefore, it's significantly practical to research forestry development by building up forestry development system and studying system innovation and governmental control innovation. This paper analyzes by system, comparison and demonstration, introduces the current domestic and overseas study and uses new systemic economic theories (properties, trade costs, enterprising, system change and governmental control) and properties economics in order to evaluate in the following two aspects the forestry policies based on the current wood manufacture industry: first, to discuss the target of the current forestry policies and the function of the different forestry economic policies; second, to analyze high level forestry system, to find out the social target of forestry manufacture and how forestry economy runs (system selection) under different forestry economic policies, and to suggest setting up a system of forestry development in the aspects of forestry development policies (primary industry development policies, environment protection policies, industrial structure development in coordination policies) and forestry organization policies (market control policies) based on the current forestry situation in China. Forestry properties system, which needs to be studied and improved to develop the forestry in sustainability and allocate the forest sources effectively. It's fundamental for the forestry development to build complete forestry properties system. The research of forestry properties focuses mainly on the definition of forest utility rights and setup and improvement of non-public forestry development policies. Policies of industry structure in coordinative development. The policies of forestry structure are influenced by different supply and demand factors and governmental economic policies and the market. It's straighter by the governmental policies on the industry, which are the principal guide for industrial development and structural adjustment. The government can adjust the factors of influencing the industrial structure change to influence the wood manufacture industry, including governmental investment and control in forestry, governmental policies of finance and currency, governmental legislation and coordination of supply structure, demanding structure, international structure and international investment structure. Policies of environment protection. The sustainability of wood manufacture industry must be legally guaranteed by complete system of environment protection policies. It can be fulfilled by direct allowance, discount loan, etc. to transfer part of the governmental income to the manufacturers. The allowance can be awarded to those who use new technologies and means against pollution. More investment can be put in forestry science and technology, which can also be guaranteed by financial allowance for new technology investment. Policies of market control. Current wood manufacturers in China are mostly medium and small sized, which have similar products, equivalent technology and cause severe competition. The competitive price is very critical if the quality between different manufacturers is equivalent. Although the price competition is one of indispensable ways in market economy, the price competition within the industry will be a big block to the whole industry. Marketing scholar Professor Philip Kotler thinks only when different manufacturers make different levels of prices can they survive for long time with the different levels of consumers. In order to avoid price competition and cause avalanche in the whole industry, there are two ways: first, to set up complete market regulations; second, to have reasonable price strategies. Therefore, the state needs to constantly optimize the forestry market and urge the manufacturers of equivalent low level to use new technology for different products. Policies of forestry trade. International society stresses very much on the environment protection by trade policies. As the international trade of forestry products takes bigger and bigger share in China, the sustainable development of the industry can be fulfilled by effective trade policies to ban over deforestation, and some industrial standards and regulations (like US Product Standard for Imported Wood Veneer and Platforms) to control forestry products import and export, ban or strictly control the trade of the species in danger, and to encourage the manufacturers to apply for quality certificates for improvement of the forestry trade structure (including market structure and product structure). Therefore, the sustainable trade policy system of forestry products can be set up on the basis of the research for environmental factors and the analysis of the impact from environment protection on trade. Demonstration analysis. This paper tries to reveal the functions from the systems on Poplar industry development by researching the Poplar industry development in Jiangsu, and to point out the advices for the organizational change of wood manufacture industry based on the problems in the wood manufacturers in North Jiangsu. In general, the forestry development is a result of system change and innovation. There is no forestry development if no system change or innovation. As the analysis of new system economics, the system effects at maximum when there is no effective system or the system is on shift. Therefore, the economy boosts fast pushed by the system innovation. So forestry develops, too.