Research On The Development And Deviation Of The Space Concentration And The Market Concentration

Traditional industry organization focused on the market concentration theory to explain the competitiveness of industries whose development was directed by big-enterprise of the industry, but they can not explain the industrial clusters which was noticed by scholars from the beginning of the 20th century. And, the flourishing industrial cluster trend further proves the industrial competitiveness unique to the space concentration. Market concentration and space concentration are not deviated phenomena. In actual economic operation, their unity is trend and direction of development of some industries. Widespread excessive competition in some of our scale-economy industries, market concentration condition and space concentration are lower in some industries. This needs government and the main enterprises to work together. It's time for the government to establish appropriate industrial policy and competition policy and help regional clusters to establish local production system and institutional mechanisms in terms of life cycle, industry life cycle and the long-term local economic development; Furthermore, the longer industry-chain sectors, can be taken into consideration to implement strategic space concentration to develop the industry, We should co-consider the market concentration and space concentration problems to create more job opportunities, market share and GDP for the region .This article tries to explore the influence mechanism of market concentration and space concentration on industrial competitiveness and profit from the general theory of economics.The full text is divided into four parts. Introduction is the first part. Chapter 1 Introduction describes the background of the writing and the purpose and significance, and introduces the paper's methodology, innovation and existing problems.The second part is focused on the analysis of the market concentration and spatial concentration, Including Chapter 2 to Chapter 4. Chapter 2 briefly describes the theories of the market concentration and space concentration. We analysis the industrial competitive power from the reasonable hypothesis of market concentration -- the profit, and the industrial competitive power from the general principle of industrial clusters, then we introduce the two paradoxes in academic fields: Schumpeter Marshall's dilemma and Schumpeter's paradox. Chapter 3 analysis the market structures of different patterns of space concentration in the previous economic theories: Marshall's industry clusters, Axle-industry clusters, and satellite- platform industry clusters. The latter part of chapter 3 mainly uses the basic knowledge of economics to analysis the space concentration from the perspective of industrial organization theory. That is to say, the market concentration is the large enterprises-led oligopoly market structure, which emphasizes on scale- economy industries. The space concentration is almost fully competitive market structure, which focus on the industries that are easy to enter and exit. In some industries, market concentration and space concentration can co-exist. Chapter 4 analyses and compares the different mechanisms of industrial competitiveness of market concentration and space concentration. The large enterprises who lead the market concentration and the SMEs who constitute the space concentration have their own competitive advantages; the former emphasizes their inner competitive advantage, and the latter focus on the clusters, which means that external economy. Under normal circumstances, market concentration led space concentration; Market concentration and space concentration of industry development are two parallel trends. Market concentration and space concentration rise up simultaneously. Which are the result of the market competition and the result of the survival of the fittest. Otherwise, it indicates the decreasing market index.The third part is about empirical examination of market concentration and space concentration, the existing problems and the policy proposals, Including Chapter 5 to Chapter 6. In recent years, the market concentration and space concentration in most industries in China showed up simultaneously .This also shows that the move in China's market process, but in a few industries, Market concentration and space concentration are downward, which deserves the attention of the local government. Market concentration and space concentration can improve the industrial competitiveness, but in the actual economical operation, they are not without flaws. Widespread excessive competition in some of our scale-economy industries, market concentration conditions is lower than that the same level of foreign situation, which affects the competitiveness of some scale-economy industries and China's overall industrial efficiency in the long run. In some SME clusters and medium-enterprise clusters, there also is opportunism. Business life cycle, Industry life cycle, the lack of flexibility of response, this needs government and the main enterprises to work together. It's time for the government to repel the local protectionism, although this is a long-term process. Meanwhile, it's time for them to establish appropriate industrial policy and competition policy to unite the domestic markets; For industry clusters, they should help to establish local production system and institutional mechanisms in terms of life cycle, industry life cycle and the long-term local economic development; Furthermore, the longer industry-chain sectors, can be taken into consideration to implement strategic space concentration to develop the industry, We should co-consider the market concentration and space concentration problems to create more job opportunities, market share and GDP for the region .The fourth part is the conclusion, the conclusion Chapter 7 mainly recall the content of the paper. And prospect the improvement of industrial competitiveness from the unity of market concentration and space concentration.