Jiangsu Regional Industry Research Upgrade Path

Since the beginning of the21st century, the international division of labor has undergone a huge change, multinational companies forced by competitive pressure are adjusting their development strategies, to outsource the processing and assembly and other low-end production processes, they retain the most competitive, but also huge profit R&D, brand, service and other core areas, constituted as a leading global value chain. Jiangsu as the national economic development in the country to use its geographical advantages to take the lead into the global value chain, has achieved rapid economic development. However, since2008after the global financial crisis, this export-oriented development strategy faces unprecedented challenges, including:the continued weakness of the external market, the loss of cost advantages in the context of labor costs and the appreciation of the RMB, the foundry model led to the global value chain’s low-end lock. Based on the above background, the goal of this study in how Jiangsu break out from the low-end of the global value chain, to build a parallel domestic value chain, enhance their competitiveness and achieve industrial upgrading.First, the analysis found that the export-oriented economic development status of Jiangsu Province, Jiangsu Province embedded into the global value chain, mainly through foreign direct investment and the processing trade, foreign direct investment is mainly concentrated in low value-added, high energy consumption, labor-intensive industries, Jiangsu’s three regional development extremely uneven, Sunan region into the depth of the global value chain is far greater than Suzhong and Subei. the dual structure of this export-oriented economy, restricting the development of coordination between the Jiangsu area. Secondly, based on the theory of international division of labor and the global value chain theory analysis of factors affecting Jiangsu industrial upgrading. Select Foreign direct investment, technological innovation, international trade and producer services development as an explanatory variable, variable per capita profits tax on behalf of industrial upgrading, the use of the13cities in Jiangsu Province,2004-2011panel data regression found that foreign direct investment in Jiangsu industrial upgrading showed a significant negative correlation between international trade and technological innovation can promote Jiangsu industrial upgrading. The then three regions of Jiangsu regression found that foreign direct investment is a negative effect of the Sunan industry upgrade, show positive effects in Suzhong, the impact of Subei is not significant. Technology innovation and industrial upgrading of the three regions have shown a positive relationship. Finally, on the basis of the empirical analysis of Jiangsu to build the domestic value chain model and proposed regional industrial upgrade path.How to build a better country based on the value chain in Jiangsu has the following policy recommendations:fostering independent innovation capacity of local enterprises in Sunan. fostering Subei manufacturing industrial clusters, to develop producer services and increase the government’s coordination and service...