Research On Provincial ICT Industry Development Level And The Influential Factors In China

The report to18th National Congress of the CPC clearly included“dramaticallyincrease the level of informationization” as one of the goals to complete the building of amoderately prosperous society in all respects, which fully reflects in the decisive stage ofbuilding a moderately prosperous society in our country, the CPC Central Committeeattaches great importance to informationization. As informationization has graduallybecome one of the important strategies of economic development in the new era, ICT(Information and Communication Technology) industry has become another key area ofeconomic development. Looking at the current researches on the evaluation of ICTindustry, most of them concentrated on the technological development, while few ofthem were involved in the evaluation of the entire industry. Therefore, this articleattempts to expand research in the direction to make a reasonable evaluation on ICTindustry development of each provinces and correctly analyze the main factors affectingthe development of China’s ICT industry, in order to provide constructive suggestions forthe healthy development of China’s ICT industry.Firstly, this article elaborates on the ICT industry and the related indicators tomeasure its development level, to establish the ICT industry development evaluationindex system, to make a horizontal comparison of ICT industry development level ofChina’s provinces based on Principal Component Analysis Method and use Cluster andDiscriminant Analysis verifying the results, drawing the conclusion that ICT industrydevelopment pattern in our country has shown lower in the West and higher in the East.Next, the article uses multivariate statistical model to analyze the impact of the twofactors-economic development and technological innovation-on the ICT industrydevelopment in China, finding that technological innovation is the most important factorto affect the development of China’s ICT industry, followed by economic development.The impact of economic development changes cyclically. At last, based on the empiricalresults, policy recommendations to promote the China’s ICT industry are put forward.