Industry Upgrade And Governmental Role Of Prior Area Of Private Economy

By redefining the meaning of industry upgrade, this paper put forward region-focused industry upgrade concept. Take industry development of Taizhou City as example (case), through reviewing the industry-level and existing problem of the area that took advanced development in private economy, this paper point out that the deficiency of enterprise's ability accumulation, and the insufficiency of supportive ability of the region is two main reason of low-level industry, because former industry organization form which once adapted to low-level competition, is no longer suited for high-level competition, also, former regional market environment can't match the inherent requirement of industry upgrade anymore, although it had been playing it's active role during the industry expanding stage. Under globalization background, for realizing industry upgrade, those areas can take two different paths, one is independent industry upgrade path through gradually pushing forward from production level to enterprise level, and further to industry level; The other is participating value chain of multinational company so as to quicken the step of industry upgrade. As to the specific means, advanced industry organization form should be formed through enhancing the whole level of cluster enterprises, so is the technology innovation that is close related to the upgrade of industry-structure, they should strive to create sound market environment that is benefited for industry upgrade at the same time.There are several comprehensive reasons for governmental intervening in industry upgrade such as market-failure, market enhancement, market fostering and market replacement, accordingly, the governmental role in facilitating the industry upgrade is comprehensive as well. During this process, following countermeasures should be taken by local government: transforming regional primary market system to modern market system; Setting up sound system environment; guiding enterprises into the path of flow upgrade, production upgrade, function upgrade and inter-department upgrade through the implemention of industry policy; Enhancing regional supportive ability for industry development through establishing a series of nice service system including technology, talent, finance, improving on infrastructure and decreasing commerce cost.