The Research For China’s Producer Service Promotes The Development Of Equipment Manufacturing

China’s equipment manufacturing industry which does the great contribution tochina’s economic growth is the basic of the national economy. In the nearly50years ofdevelopment process, the equipment manufacturing industry has formed acomprehensive support system. But its developed problem has become increasinglyprominent; the main problem is the technological innovation capability is relatively poor.The face of the global economic division of the new round reshuffle, as well as risinglabor costs and the reduction of natural resources, the equipment manufacturing industryusher in a new challenge. Equipment manufacturing industry must upgrade the industrialstructure and strengthen independent innovation. Then how to improve the technologicalinnovation capability of the equipment manufacturing industry?Producer service transports technology and knowledge as a factor of production toequipment manufacturing industry which can improve the technological innovationcapability and support for upgrading the industrial structure of the equipmentmanufacturing industry. Equipment manufacturing industry, the demand for producerservices, will be provided the pillar for producer services development. But in ourCountry, producer service has not yet developed; it has little effect on the equipmentmanufacturing industry. It is necessary to research the result that produce service has theweek role of equipment manufacturing industry. By comparative analysis of thedevelopment for producer service and equipment manufacturing industry in the typicalareas, then the article gives advices on producer service to promote the development ofequipment manufacturing industry.The article will build model based on the either production function and Romer’sendogenous variable model. By the model to prove that the equipment manufacturingindustry and producer service is able to coordinate development. When to coordinateddevelopment of the equipment manufacturing industry and producer service, producerservicer can even improve the production efficiency of the equipment manufacturingindustry; through establishing the regression model by theoretical hypotheses, using theleast squares method and Eviews software, and do the analysis. The article finds that the producer servicer has the little effect on the equipment manufacturing industry by theconclusion. Producer service also gives little effect on the production efficiency of theequipment manufacturing industry through the technological innovation, cost reducingand economic growth. Through the research on the degree of specialization of producerservice, the transaction costs and the relationship on the demand and supply of theproducer service and equipment manufacturing industry, it hopes to find the results thatproducer service has week role on equipment manufacturing industry. By analysis theeconomic zone in the Yangtze River Delta, Beijing-Tianjin-Hebei economic zone, thePearl River Delta economic zone and northeast economic zone, it shows that our level ofdevelopment of the different parts of the equipment manufacturing industry and producerservices. Finally come to the conclusion of the producer service promotes the China’sequipment manufacturing development. First, improve the professional level of theproducer service. Large-scale equipment manufacturing enterprises try to expand thescale and improve the degree of the specialization. Small and medium sized equipmentmanufacturing enterprises try to become meticulous. Second, reduce the transaction costsof the equipment manufacturing industry and producer service. It includes theopportunity costs, trust costs, information costs and human resources costs. Third,improve the equipment manufacturing industry demand of producer service, it is theinevitable choice of the equipment manufacturing industry restructuring and upgrading ofthe structure. At last, improve the supply capacity of the produce service. By formulatinga reasonable access system and preferential policies, to improve the number of theproducer service enterprises. It also can improve the level of the market-orient producerservice through formulating the industry development policies.The paper is divided into seven parts. The first chapter is the introduction; the mainproposed papers and solve problems; The second chapter is the literature review, mainlyto sort out the progress in the direction of development of the theory of China and abroadon the development of the equipment manufacturing industry and producer services; Thethird chapter is the theoretical model of produce service promotes the equipmentmanufacturing industry development. Products of producer services as an importantintermediate for the equipment manufacturing industry input factors can reduce theproduction cost and improve the added value of the equipment manufacturing industry, thus improving the efficiency of the production of the equipment manufacturing industry.This chapter will build model based on the either production function and Romer’sendogenous variable model. By the model to prove that the equipment manufacturingindustry and producer services is able to coordinate development. When to coordinateddevelopment of the equipment manufacturing industry and producer services, producerservicers can even improve the production efficiency of the equipment manufacturingindustry. The fourth chapter is the analysis that in the reality China’s equipmentmanufacturing industry and producer services on whether the path of the balanceddevelopment? Whether producer services improve the production efficiency of theequipment manufacturing industry? This chapter establishes the regression model bytheoretical hypotheses, uses the least squares method and Eviews software, and does theanalysis. Description the current situation of China’s equipment manufacturing industryand producer services industry through the conclusion. The fifth chapter Through theresearch on the degree of specialization of producer service, the transaction costs and therelationship on the demand and supply of the producer service and equipmentmanufacturing industry, it finds the results that producer service has week role onequipment manufacturing industry; The sixth chapter analysis the economic zone in theYangtze River Delta, Beijing-Tianjin-Hebei economic zone, the Pearl River Deltaeconomic zone and Northeast economic zone, to shows that our level of development ofthe equipment manufacturing industry and producer services in the different parts. Theseventh chapter come to the conclusion of the producer service promotes the China’sequipment manufacturing development. The advices include improve the professionallevel of the producer service; reduce the transaction costs of the equipmentmanufacturing industry and producer service; improve the equipment manufacturingindustry demand of producer service; improve the supply capacity of the produce service.