A Study On The Role Of Local Government In Industrial Upgrading

China’s economy and social structure have changed dramatically after30years of reform and opening up, but the mode of economic growth didn’t have a fundamental change. History experience tells us that economic growth can’t be based on comparative advantage of resources and labor, but relies on industrial transformation and upgrading that is a fundamental development method.As the starting area of China’s private economy, Wenzhou was well-known in the world for its "Wenzhou model". However, inn recent years, the industrial development in Wenzhou has ranked the slowest of Zhejiang Province. A Chinese scholar Shi Jinchuan pointed out that the problem of industrial upgrading in Wenzhou is the phenomenon of "intergenerational lock". As a representative local government, the government of Wenzhou has to seriously think about and solve the problems facing in this post-financial crisis era, including how to overcome the negative external influence and launch public policies for regional industrial upgrading according to the actual situation of Wenzhou to further optimize the industrial structure, how to enhance the enterprises’innovative abilities and adjust economic growth mode, how to deal with the relationship between government, enterprises and the market to ultimately enhance Wenzhou’s industrial upgrading smoothly and efficiently.Based on the analysis of several industrial upgrading in Wenzhou over the past30years since the Reform&Opening-up, this paper summarizes the characteristics of Wenzhou’s industrial upgrading. Combine with the specific measures the Wenzhou government has taken at different stages, this paper mainly discusses in a "special-to-general" way about the internal mechanism of the role of government in industrial upgrading.Through a comparison of the main strategies of Singapore, Japan and South Korea governments in industrial structure adjusting, this paper obtains some inspirations for Wenzhou government to facilitate industrial upgrading by learning the methods of Shanghai and Jiangsu in promoting industrial upgrading. Based on above and considering the current industrial structure conditions, existing problems and obstacles of further industrial upgrading of Wenzhou, this paper proposes some corresponding countermeasures for Wenzhou government to guide the industrial transformation and upgrading.