Research On The Competitiveness Of The Equipment Manufacturing Industry In Shanxi Province

As a basic industry in national economic development, the equipment manufacturing industry’s characteristics includes capital and technology intensive, strong industry association in stimulating, high employment capacity, etc. The industry’s development level can comprehensively reflect regional industrial and manufacturing level of development and innovation of science and technology strength; can reflect the regional comprehensive competitiveness level. Competitiveness refers to the different advantages between different regions within the same industry. This advantage finally embodied in production, management and the final marketing. As an important analysis theory, competitiveness can reflect development level of a certain area’s industry. The equipment manufacturing industry in Shanxi Province has a long history. In the specific historical period, the industry has experienced rapid development and has important strategic role on the economic construction in our country. But since the reform and opening, under the condition of market economy, the equipment manufacturing industry’s competitive advantage gradually weakened in Shanxi Province, at the same time, this industry’s development level is far lower than that of the eastern region and that of the national. Under the new condition,-the development of equipment manufacturing industry in Shanxi Province is faced with many restrict factors, such as insufficient funds, old equipment, shortage of talents and technology lag behind, etc. The direct consequence is the shortage of the equipment manufacturing industry’s overall competitiveness in Shanxi Province.At present, our country has a number of policies to encourage the revitalization of the equipment manufacturing industry development. Meanwhile, Shanxi provincial government also gradually realized the strategic significance of the development of the equipment manufacturing industry, striving positively for transformation and breakthrough. How to grasp the good opportunity of the equipment manufacturing industry’s revitalization, how to take advantage of new preferential policy, how to take advantage of the original industrial development foundation and geographical advantage to accelerate the equipment manufacturing industry development, enhance the overall competitiveness of the equipment manufacturing industry in Shanxi Province, and then realize the sustainable and the breakthrough development of equipment manufacturing industry in Shanxi Province, has become the problem to be solved in the process of industrialization in Shanxi Province and subject.Firstly, this paper introduces the theory of the equipment manufacturing industry and the theory of regional industry competitiveness.. All of this laid the relevant theoretical basis on the research about the competitiveness of the equipment manufacturing industry in Shanxi Province. Secondly, this paper reviewed the history about the development of the equipment manufacturing industry in Shanxi Province. From the development result and main problems of the equipment manufacturing industry in Shanxi Province, this paper introduces the present situation of the equipment manufacturing industry development in Shanxi Province. Thirdly, based on Michael E.Porter’s "diamond model", from the industry economy, the industrial innovation power, the industrial economy and industrial policy environment, the paper builds the evaluation index system of competitiveness of equipment manufacturing industry in Shanxi Province. Fourth, based on the constructed index system, using principal component analysis (PCA), the paper measures the equipment manufacturing industry’s competitiveness level of Shanxi Province are analyzed, to facilitate horizontal comparison, as well as the other 29 provinces and regions of the country’s competitiveness of equipment manufacturing industry has carried on the measure, drawing the relevant conclusions. Finally, on the basis of the conclusion and the future development trend of the equipment manufacturing industry, the paper proposes countermeasures and suggestions to promote the competitiveness of the equipment manufacturing industry in Shanxi Province.The results showed that the development of equipment manufacturing industry in Shanxi Province has made certain achievements, for example, the economy and production benefit will increase steadily, and the industry system has been further improved. However, the small number of economy, low production efficiency and low concentration level has seriously restricted the further development of the industry. In addition, after the comparative analysis to other provinces, the equipment manufacturing industry in Shanxi Province’s overall development level is relatively backward and the gap is larger. On this basis, the principal component analysis (PCA) is applied to measure the competitiveness of equipment manufacturing industry in Shanxi Province level research. We learned that the comprehensive score of competitiveness of equipment manufacturing industry in Shanxi Province is not high. This all shows the low level of competitiveness. In combination with principal component analysis, the main reason includes:First, because the industry scale of production is low and that the industry internal production condition foundation is bad, the industry can’t realize the scale production. Second, because of the low industrial efficiency, most enterprises’ economic growth is slow or even negative, which blocks the industry’s expanded reproduction and blocks the benign development of the industry. Third, because of the influence of policy environment, for a long time, coal and electric power industries take a large proportion in the industry’s development. The attention of the importance and the input to the equipment manufacturing industry is far away from enough. So, the current situation of the small amount and the poor structure of the equipment manufacturing industry did not improve. At the same time, the equipment manufacturing industry in Shanxi Province, the highest competitiveness of the industry is Special equipment manufacturing industry, followed by the Computer and other electronic equipment manufacturing industry. As the competitive industry of the equipment manufacturing industry in Shanxi Province, the policy environment of the Special equipment manufacturing industry is better. The economic benefit of the Computer and other electronic equipment manufacturing industry is better than other else.All in all, the competitiveness score of the equipment manufacturing industry in Shanxi Province is a result of the combined action of various factors, including the industry’s economic strength, the industry innovation capability and the industry’s policy environment etc. To promote the competitiveness of equipment manufacturing industry in Shanxi Province, we should take following measures:we should broaden the financing channels so as to improve the financial strength; we should strengthen technical innovation to improve the independent research and development ability; we should optimize the allocation of resources to promote the development of industrial cluster; we should combine with the characteristics of industry, especially focusing on the development of competitive industries; we should strengthen the brand construction to develop the high-end equipment manufacturing industry; we should improve the function of the government to optimize the industrial market environment.