Research On The Transformation And Upgrading Of China's Manufacturing Industry Under The Background Of Digital Economy

China’s manufacturing industry has encountered some challenges in the process of becoming stronger.First is the shortage in key technology areas.Second is the gradually weakening of the comparative advantage.Third is the intensifying in international competition.Facing internal and external troubles,China’s manufacturing industry urgently needs to realize transformation and upgrading,and moves towards a new track of stable,healthy and sustainable development.Digital economy with its digital information and knowledge,a strong guiding,permeability and fusion of information and communication technology,and connective information network,penetrate into all aspects of the traditional industry,changing the mode and characteristics of its technology innovation,resource factor and market demand,and has brought great opportunities for the transformation and upgrading of China’s manufacturing industry.China started to use the concept of digital economy in 2016,and related researches started later.This paper,firstly,by analyzing a large number of literature,defined the concept of digital economy,China’s manufacturing industry and the transformation and upgrading of manufacturing industry.The Digital Economy is defined as a new economic pattern to use the digital knowledge and information as the key factors of production,use the modern information network as an important carrier,and use the information and communications technology(ICT)as an important driver of efficiency improvement and optimization of economic structure.The transformation and upgrading of manufacturing can be split into three part: the intellectualization transformation,the upgrading of the value chain and the upgrading of industrial structure.Secondly,sought basis of the theoretical framework from the techno-economic paradigm theory and industrial upgrading theory.Thirdly,the literature review: one aspect is the influencing factors of the transformation and upgrading of the manufacturing industry;another is the impact of digital economy on the transformation and upgrading of manufacturing industry.This chapter lays a foundation for the theoretical framework building and empirical method selection.In the part of current situation analysis,this paper first analyzes the penetration of digital economy into China’s manufacturing industry from three levels-overall industry,sub-industry and each region.Then it introduces the four new business models in manufacturing industry stimulated by digital economy,which is customization,network collaboration,intelligent production and service manufacturing.Finally,it use indicators of intellectualization transformation(digitization,networking and intelligentization),value chain upgrading(the profit margin of manufacturing industry,the value-added rate of manufacturing industry)and industrial structure upgrading(the rationalization of industrial structure,the optimization of industrial structure)to demonstrate the current level of transformation and upgrading of China’s manufacturing industry.In the theoretical analysis part,this paper choose the three most important factors-technical innovation,resources and market demand,as the supporting point,to set up the theory framework,which has three logic layers: the new structure of the factor under digital economy-the new economic characteristics of the factor-how new structure and the new characteristics influence the transformation and upgrading of manufacturing.Under the background of digital economy,the technical innovation of manufacturing industry has produced two new modes,open innovation and distributed innovation,which have three economic characteristics-the improvement of innovation efficiency,the increase of innovation profit and the shortening of the R&D cycle.Under the innovation cooperation mechanism,the game model of open innovation subject is constructed,and it is concluded that the whole value chain of the manufacturing industry has the highest level of upgrading when each subject chooses the sub-optimal solution.Under the background of digital economy,the resource factor of manufacturing industry present a new structure of transforming from primary factors to advanced factors.These new elements are characterized by increasing marginal effect,increasing marginal output and decreasing marginal cost,which provide support for the transformation and upgrading of the manufacturing industry,such as faster turnover and higher technological content.Under the background of digital economy,the market structure of manufacturing industry present a platform of monopolistic competition.However,the monopoly does not affect the efficiency of markets,but achieve a double-win under the market competition mechanism,inspiring the personalization,diversification and dynamic of market demand,thus promoting the transformation and upgrading of China’s manufacturing industry.In the empirical analysis part,this paper chooses the entropy weight method in calculating the explained variable "the transformation and upgrading level of China’s manufacturing industry" and one of the explaining variable "technology innovation ability".Then use the actual data of China’s manufacturing industry from 2009 to2018 and the factor regression analysis method,to measure the technical innovation,resources and market demand,a total of nine variables’ influence on the transformation and upgrading level of China’s manufacturing industry.Calculated result shows that all the explaining variables have a positive influence on the transformation and upgrading level of manufacturing under a significant level of 95%.According to the influence degree from high to low,the variables are human capital stock,the percentage of the personalized customization,technology innovation ability,the percentage of the networked collaborative innovation,per capita income,industry concentration,the ICT investment intensity and the big data investment intensity.In the suggestion and prospect part,this paper compared the industrial policy of main manufacturing power in the world,and based on the result of previous analysis,raised the proposal respectively from the technical innovation(promote technology innovation ability,develop technological coordinated innovation system),resources(increase the proportion of high-quality talent,improve the utilization rate of information and communication technology,stimulate the potential of data elements)and market demand(attach great importance to the digital economy’s influence on consumer behaviour,set up the market laws and regulations for platform leaders)aspects.Then according to the development law introduced by the techno-economic paradigm theory,the expectation of the transformation and upgrading of China’s manufacturing industry is raised in terms of the technical innovation and data elements.This paper applies literature induction,theoretical analysis and empirical analysis.In theoretical analysis,based on the existing economic theories and research results,a three-tier theoretical analysis framework is constructed,which provides a new perspective for the theoretical analysis of industrial upgrading.By splitting the digital economy into three parts-data elements,ICT and information network,the infiltration effect of digital economy on manufacturing industry can be more clearly reflected.This paper creatively summarizes and analyzes the new structure of technology innovation,resources and market demand of manufacturing under the background of digital economy.In empirical analysis,the author innovates the selection and calculation of indicators to reflect the new characteristics of manufacturing under digital economy.It hopes that this article can arouse more responses and suggestions from scholars and colleagues,and make contributions to the research of the development of China’s manufacturing industry under the digital economy paradigm.