Study On The Upgrading Of China's Equipment Manufacturing Industry Under Global Technological Progress

As the integration of various technological progress,the equipment manufacturing industry is the core of the manufacturing industry,the base of industrialization and the backbone of the national economy.Today,with the rapid development of the new revolution of science and technology,the pattern of global economic growth is changing and the mode of globalization is changing constantly.China's equipment manufacturing industry is still at a low end in the global value chain(GVC).It is not only facing the impact of disruptive technology,but also facing the severe challenges of "two-way extrusion" by developed countries and other developing countries.If we want to maintain China's economic growth momentum,we must promote the equipment manufacturing industry through industrial upgrading to higher value-added and better prospects of technology intensive industries.Technological progress is one of the important driving forces to promote the industrial upgrading of equipment manufacturing industry.In the context of global technological progress,the industrial upgrading of equipment manufacturing industry is not only a problem of industrial development of a certain country,but an interaction with a specific GVC and its production network.Generally,GVC can integrate through foreign direct investment,technology licensing,imports of capital goods in direct and indirect channels of knowledge transfer,knowledge sharing,and promote technological progress and industrial upgrading in developing countries.However,the GVC management mode of enterprises in developed countries are more high-end value chain links,the majority of developing countries in manufacturing enterprises are often blocked in the low-end value chain links,in accordance with the basic knowledge and information to carry out the leading part of enterprise transfer.Whether GVC integration is effective in promoting technological progress depends on the extent of technology spillovers in developed countries and the availability of technology absorptive capacity in developing countries.Therefore,the research on the technological progress and industrial upgrading of equipment manufacturing industry under GVC,not only has important significance for China to achieve leapfrog development in the new round of technological revolution with intelligent manufacturing technology as the representative,but also play an important role to enhance the international competitiveness of the equipment manufacturing industry and changing economic growth mode.Based on the GVC theory,late-developing advantage theory and the theory of economic growth et al.,this paper focuses on the analysis of technological progress in equipment manufacturing industry from the perspective of integration into the GVC,and expounds the rule and classical model about technological progress promoting industrial upgrading.The paper analyzes the mechanism of technological progress and industrial upgrading path under the situation of integration into the GVC,and analyzes the main influential factors of industrial upgrading.Based on the status of equipment manufacturing industry in the GVC?the overall development?the technical level and sample enterprise situation,we analyzed the status quo of China's equipment manufacturing industry into the GVC and the main problems.Based on the analysis of global technological progress trend,comparison and evaluation of the main national industrial policy,this paper built the upgrading evaluation index system of equipment manufacturing industry including technological innovation,asset structure,talent structure,output structure,green development,integration of information technology and industrialization.through theoretical modeling,and the panel data of 1999-2012 7 subdivision industry of China's equipment manufacturing industry,the paper made empirical analysis on the effect of equipment manufacturing industry integration into GVC on technological progress for the first time,and then put forward "autonomous" upgrade path based on system engineering model;"clustered" upgrade path based on industrial commons;"gradual" upgrade path based on introduction-digestion-absorption-independent innovation;"encircling"upgrade path based on integration into sub value chain from the main value chain.The paper also makes a case study of the numerical control machine industry.In this paper,we use the methods of literature deduction,theoretical modeling,multivariate statistical analysis and so on,and come to the following basic conclusions:(1)Since the central economic and industrial conference proposed to develop equipment manufacturing industry in 1998,China's equipment manufacturing industry has made many outstanding achievements,at the same time,the constraints have become increasingly prominent.By actively integrate into the GVC division system,China has become the first manufacturing and trade power of the world.It is mainly embodied in the following aspects:industrial output continues to expand the scale,equipment manufacturing industry is still the pillar industry of the overall national economy;foreign trade continues to expand the scale,the proportion of exports showed a downward trend,the export structure has been improved;attracting foreign investment growth slowed and foreign investment increased rapidly.At the same time,some constraints have also led to the long-term development of equipment manufacturing industry in the GVC.The calculation results show that equipment manufacturing industry had obvious technological progress before 2008,and then there was a downward trend,part of the industry showed Slowly rising after 2010.In general,showing an overall change path and the trend of rising first,then fall,later rise,it means that the equipment manufacturing industry has become increasingly prominent structural contradictions.(2)Based on the input output table,this paper calculates the degree index of equipment manufacturing industry integration into the GVC.The results showed that during 1999-2012,the degree of integration of the various sub sectors showed characteristics of "W" peaked in 2005,in 2001 and 2009 to two lows,maybe with the reason that formally join the world trade organization in 2003,and the global financial crisis in 2001 and 2008.The total export complexity analysis estimates that the GVC status index shows overall upward trend from 2001 to 2014,but not stable.It means that China's equipment manufacturing industry status in international division of labor is low,compared with the advanced countries there is still a huge technology gap.(3)The effect of "blocking effect" and "promotion effect" on the technological progress of China's equipment manufacturing industry is influenced by the integration of GVC.The empirical results showed a U curve between integration into GVC and technological progress,which reflects the difference between equipment manufacturing industry and general manufacturing industry.Since 1998,with the"WTO accession" negotiation process speeding up,the high protection policy was weakened on China's local equipment manufacturing industry;the import tariff was substantially reduced;foreign-invested enterprises settled in china in large scale.Because the Chinese market face direct competition from foreign-invested enterprises and foreign products,resulting in a greater impact to local business development and product sales;As the absorption ability of the local enterprise technology is weak,and once reach to stage of functional upgrade that will touch the core interests of the leading enterprise of the value chain,so in the short term we can not obtain technology spillover through integration into the GVC with the existence of blocking effect;with local enterprises' independent innovation ability and the technological absorption capacity of continuous improvement,promoting effect will gradually increase.(4)The main factors affecting the upgrading of China's equipment manufacturing industry under the background of global technological progress includes industrial policy and economic mechanism?the governance mode of GVC?enterprise transnational operation ability?advanced human capital supply et al.With the continuous separation and refinement of GVC division and industrial activities,in addition to the traditional GVC upgrade mode which Humphrey and Schmitz(2002)proposed,upgrading path also includes the value chain upgrade in the same product?the product structure upgrade in the same industry?the upgrade of different factor intensive industry?the upgrade with the improvement of technology capability in the intra industry.In view of the influence mechanism of integration into the GVC on technological progress and industrial upgrading,and equipment manufacturing industry's own characteristics,this paper put forward "autonomous" upgrade path based on system engineering model;"clustered" upgrade path based on industrial commons;"gradual" upgrade path based on introduction-digestion-absorption-Independent innovation;"encircling" upgrade path based on integration into sub value chain from the main value chain.Based on the research results and relevant conclusions,this paper proposes the following policy recommendations:(1)At the national aspects,establish and perfect the legal system of foreign investment,create a favorable legal environment;strengthen the technological achievements protection,guard against the intellectual property trap;take "intelligent manufacturing" as the main direction,promote the small?medium and large-sized enterprise coordinated development;construct industry commons to promote the realization of independent innovation mode for the industrial cluster;accelerate the integration of information and industrialization,promote the GVC position of the equipment manufacturing industry.(2)At the industry aspects,a combination of research and production based on technical maturity should be established to form a benign interaction mechanism;Industry associations should adapt to the new situation of decoupling reform,better service micro enterprise and influence the government;Integration into the GVC should focus on the industry with great technological upgrading and space,and realize the efficient docking between the domestic value chain and the GVC.(3)At the enterprise aspects,in-depth practice the military and civilian integration strategy,continue to optimize the internal structure of the equipment manufacturing industry;focus on the transnational merger technology synergies,improve technology absorptive capacity;construct the GVC strategy,integrate into GVC according to the comparative advantage;improve technological absorptive capacity,pay attention to the synergistic effect when taking cross-border merger and acquistions.