Study On The Impact Of Producer Service On The Profitability And Innovation Of Auto Industry In Shanghai

Relying on the advantage of cheap labor, China’s manufacturing industry is on the low-end of the value chain of manufacture in the global without attaching importance to improve competitiveness by technology and innovation. Producer services put the human capital and intellectual capital into the manufacture and act like "conveyor belt". Producer service is a supplier of knowledge and technology for manufacture. However status of producer service in the economic in China is low, this economic structure is not only resulted in lags behind of industry development, also has restricted the improvement of manufacturing competitiveness, which is the equivalent of "wooden barrel effect". Car manufacturing is one of the six key industries of Shanghai and also the epitome of Shanghai manufacturing. But compared with the west, the domestic automobile manufacturing industry is still weak. Car manufacturing provides a development platform for producer services is more important for steam manufacturing competitiveness to promote producer services provide corresponding service support. What is more important, producer services improve the car manufacturing. This article is based on the characteristics of the producer services, to study their impact on the profit ability and innovation ability of auto industry, reveal the productive service industry on the profound significance of the automobile manufacturing industry to upgrade and make contribution to our country for the development of producer services and manufacturing interaction.Specific analysis framework is as follows:based on the three aspects of relations theories, industry associations and influencing mechanism, the paper analyzes the influence of the producer services on automobile manufacturing for later empirical analysis on the profits and innovation affect. This paper use the regression analysis on the profits and innovation of automobile manufacturing with producer service. Through the establishment of regression model, using the data from1991to2012and the method of granger causality test to do quantitative analysis:①the transportation and warehousing and the postal service;②information transmission and computer services and software industry;③wholesale and retail services;④the financial insurance industry;⑤leasing and business services;⑥Science and technology research and technical service, the influence of six producer services on car producers’ profit and innovation.Research results show that the producer services have a role in promoting profits and innovation of car manufacturing. And the influence of different industries is not the same size. Transportation and storage and the postal service have a larger influence on auto industry profits, but no significant effect on car manufacturing innovation. Information transmission and computer services and software have a significant impact on profits and innovation of car manufacturing. Wholesale and retail services have a greater influence on the profit than innovation, but both are significantly. Financial Services play a great role to improve profits and innovation of auto industry. Leasing and business services have a greater influence on the innovation of auto manufacturing. Science and technology research and development services focus on the influence of innovation for auto industry.