| An area’s development degree depends on the product’s value which produced it. So, if you want to develop economy, you need to upgrade the regional product’s value. How to make a region of low value industrial transform into high value industry has been the main research content of most economists. Industrial transformation and upgrading of economic development is an essential process, it reflects the economic structure of the internal transformation, is the allocation of resources and the value of the products change embodiment. A regional industrial selection needs to be integrated into the natural environment, the level of science and technology, the amount of capital, production technology, government policy system and related areas of contact and so on.Since reforming and opening up, after decades of rapid development of Zhejiang has become the eastern part of our country’s economy strong province, in the stage of development has been in the late stage of industrialization. Export-oriented economy in Zhejiang, pattern of its economy growth is mainly focused on the production of labor-intensive products. Although in the total economy number, Zhejiang has been in the leading position, however compare with the developed regions and countries, Zhejiang has great gap in the industrial structure and the technical content of the product, the proportion of investment and capital in terms of value. Suffer from the international financial crisis, Zhejiang’s export orders had decreased greatly, this has brought huge losses, many small and medium enterprises bankruptcy. The crisis although lead to the order of international market’s low value products consumer reduced greatly, but the demand for high-end products are still strong. To deal with this crisis, the policy has been made to expand the domestic demand. Zhejiang must seize the opportunity to transform industrials from low value to high. This paper adopts the "product space" theory to analysis Zhejiang’s industrial products, and forecast the future of the industrial transformation and upgrading direction, the choice of dominant industry, government industry strategic planning, and which role should the government play in the transformation and upgrading.In this article, we defined China as an opening whole part. Every provinces regard as part of it. We calculated the proximity and RCA of111products. Then we found the RCA products of every province, calculated the PRODY of111products and classify the high grade products. Compared with Guangdong and Jiangsu in RCA, we can see the position of Zhejiang in product space. We will forecast the future of Zhejiang industrial transformation and upgrading by using iteration the three provinces products with different proximity. Finally, we will give some suggestions for Zhejiang industrial transformation and upgrading.The main content of this paper is divided into four parts:The first part, introduces the connotation of industry transformation and upgrading. I reviewed the industrial transformation and upgrading of the concept, upgrading of industry transition ways and different scholar views in government play which role in industrial transformation and upgrading.The second part, use the "product space" theory to analysis Zhejiang industrial product development trend. Through contrast Zhejiang, Guangdong and Jiangsu provinces’advantage industrial products and leading industry, predict the development trend of Zhejiang.The third part, analysis the advantages and disadvantages of Zhejiang industry, decide which policies should be taken to development Zhejiang dominant industry.The fourth part, we analysis the faults of government in promotion of industrial restructuring and upgrading. The government should take the right functions and related policies in improving Zhejiang’s industrial restructuring process. The government should make the right develop strategy, transformation its functions and policy making to create a good environment for the Zhejiang industrial transformation and upgrading... |
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