Electronic Information Manufacturing Industry Concentration Study

As the most important pillar industry in shanghai, electronic and information industry has always played a significant role in the progress of shanghai economic, as well as in the Yangtze River Delta and even in our country. In full view of its extremely importance and problems brought out in development, this paper analyzes the electronic and information industry on the basis of industrial organization theory, aiming at finding out strategies and measures for maintaining healthy and rapid development of the industry.Started with development status of electronic and information industry, this paper launches the demonstration analysis on relationship between profitability and the degree of concentration. This paper explores the main factors of the concentration degree by building the concentration measurement model, and makes suggestions on increasing the industry concentration.Through empirical analysis, we found that the market structure of electronic and information industry experienced a short process from the high concentration of oligopoly-type competition into the perfect competition. There is a clear positive linear correlation between the degree of concentration of industries and market performance. Known as the modern industry, electronic and information industry in Shanghai is still a cost-oriented industry, and has significant effect of scale economies, while market structure playing a decisive role of on the industry performance. Some policy and the non-efficiency competition bring about nonstandard operations. The competition-based market structure and market performance are out of line. All those lead to excessive entering, intense competition, low yields, long return period and high market risk.To remain competitive ability in Shanghai's electronic and information industry, we must accelerate the adjustment of policies to limit excessive market access, reduce barriers for withdrawing from the industry, control the scale of investment industry, encourage technological innovation in enterprises, giving full play to the market mechanism, speed up the readjustment of the industrial structure, and promote the healthy development.