Growth And Development Of New Materials Industry Research

This article attempts to search out the growth characteristics of new material industry in China by way of analyzing its growth at all stages based on industry growth theory, industry organization theory and industry competitiveness theory. The aim of this article is to present relevant advices and suggestions for new material industry in China to advance industry competitiveness and promote industry growth through analysis of characteristics, chain, scale centralization and standard in this industry.The author's opinion is that new material industry displays all the characteristics for salutatory development. However, there are no relevant views in traditional industrial growth theory (except for Schumpeter's theory of innovation). The significance of this article is to introduce a'saltatory development'theory for industrial growth by way of feasibility study in relevant area of Chinese new material industry. Some realistic advices and measures are put forward to stimulate health growth in this industry. The author hopes such advices and measures can also help government to make relevant, effective polices.This article includes three main sections:1. The first section-theory research includes chapter one and chapter two. They are summaries and analysis of relevant theories and theoretical basis of this article.2. The second section is from chapter 3 to chapter 6, which is the soul of this article. Chapter 3 is the introduction of characteristics, state of the art and trend of development of new material industry in the world. Chapter 4 is the review of all stages of development in Chinese new material industry, which emphasizes structural characteristics of industry, product and region at stage of transition. This chapter also introduces international status of Chinese new material industry. Chapter 5 is the calculation of contribution rate of capital input, technological advancement and labor force increase to new material industry in China. Cobe-Douglas Production Function is applied in this calculation to reveal development forms of Chinese new material industry and main causes leading such forms. Chapter 6 is the evaluation of organization status in Chinese new material industry from aspects of marketing structure, marketing behavior and economy performance. SCP theory frame is used to find out barriers existing in development of industrial organizations. Detailed and accurate data is used for analysis of mode of production.3. Chapter 7 is analysis of factors restricting development of new material industry in China, which focuses on the functions of government and the transformation of industrial organization.The important research findings of this article are:1.'Industrial base'is main distributing form of new material industry in China. From the point of view of industrial economics, it combines guidance mode with compulsion mode to stimulate industry growth.2. Industrial division for China is at the turning point in the course of changing form the vertical to the horizontal. Chinese new material industry is likely to be the first field to achieve such divisions.3. The C-D model regression analysis of listed new material companies in China from year 2002-year 2004 shows that efficiency improvement coming from technological advancement results in rapid growth in this industry. Chinese new material industrial was booming in 2005 due to huge capital input. Mergers and acquisitions culminated during year 2005 and 2006, which results in obviously increasing returns to scale. However, along with expanding scale of output, contribution rate of technological advancement was continuously decreasing, especially in year 2005.4. Particularity of development in Chinese new material industry determines particularity in its market operation. Such particularities include: industrial development more depends on: 1). Financial support and policies of government in the course of industrialization; 2). Macro-economical situation and industry foundation in different regions.5. Chinese Big-airplane project is a milestone (from quantitative change to qualitative change) in development of new material industry. From the point of view of industrial technique, it indicates China's leading role of some core technologies in this area. Chinese new material industry has already had ability to absorb advanced technologies in the world after nearly 20 years'development, especially in last 10 years. From the point of view of industrial development, it indicates conformity of industrial chain will reach a higher level; transformation of organizations in new material industry is peremptory; and new material industry will enter a whole new stage of development.6. In the economic development system where government plays a leading role, the development of new material industry more depends on the governments polices regarding research and development funds, natural resources and conformity of industrial chain. In China, the main body of industrial organization is government or enterprises implementing industrial polices of government. Innovation of industrial organization must be achieved first to obtain so-called'industrial mutation'in Joseph A Schumpeter's theory of innovation.7. Local government especially stern local government should make rational use of administrative resources and abolish executive orders to designate innovation zone and allocate innovation funds. The government must never use administrative methods for manufacturing industry to direct technological innovation. Policies, especially from the local government must be adjusted to accelerate the industrialization of new material industry.