Opportunity Identification Of Industrial Upgrading From The Perspective Of Producer

The core of China’s economic slowdown and shift is the economic restructuring under the "new normal". Enterprises is the main bearer of economic restructuring, and the primary prerequisite of which has become the successful enabler of economic transformation is the ability to identify the products and directions, which best suited to different times to upgrade. However, enterprises or local governments find upgrade direction or transition product will not be easy and economists have been constantly working and made some identification methods and tools. Product space and evolutionary theory of comparative advantage in a series of papers(Referred to HK model)reject the continuous and homogeneous assumptions of the previous research in product space, and identify the product upgrade path by constructing the product space map. After that, Some scholars of the domestic and foreign have to apply it to study industrial upgrading and restructuring in the special national and the regional area. Taken together, the most of the studies is in the country dimension, Ignore that the complexity of the comparative advantage evolution in various types of regional may result from the differences of the endogenous and potential benefits industry; And more use of export data, rather than production data, missing out the non-export data. And the lack of relevant research to identify the direction of the industrial upgrading and the adjust capabilities from the producer perspective, which is the main bearers of industrial upgrading.This paper tries to use nearly 500 kinds of products’ production data on the basis of overcome these limitations in the year of 2005-2010,build product space the producers ability to adjust and the sensitivity index of the current and most comparative advantage’s products, reconstruction of Chinese products map, identify the potential upgrade opportunity of different industries in different regions. In this paper, we conclude through theoretical analyze that the higher the sensitivity level of the industry, the richer of the producers grasp product structure changes information in the product space, the more accurate capacity adjustment, the more reasonable Industrial upgrading judgment, the more able to reduce the risk of industrial upgrading. The industry should be currently the most development industry of which most have a comparative advantage, the success rate of the largest industrial upgrading in this area. The empirical results show that in the current product space, sub-industry perspective the country has the highest sensitivity of 78 kinds of products, 154 kinds of products are generally sensitive to the low sensitivity of 90 kinds of products. Other products is not sensitive to changes in the spatial structure of the product. Divide the provinces, the highest total number of sensitive products in five provinces of Zhejiang, Shanghai, Shandong, Jiangsu, Guangdong, respectively 149,144,141,138,129. Minimum of five provinces of Xinjiang, Shanxi, Tibet, Hainan, Guizot, respectively 21,30 34,36,39. Thus making sure the obstacles of hinder the current competitive advantage industries mainly reflected on over-reliance on traditional industries, lack of product diversity, lack of technological innovation. Accordingly formulate strategies for industrial upgrading multiple equilibrium: the industry is currently focusing on the development of the most traditional industries with comparative advantages, from the article to find the sensitivity of the provinces in the industry; Develop the rest of the industry, increase product diversity; Accelerate technological innovation, expanding product comparative advantage.