The Role Adaptation Of Local Government In The Industrial Development

The relationship between government and market is always the central topic discussed in economic theory and political practice.In the past 40 years,China's rapid economic growth under the national reform and opening-up policy has been regarded as a "miracle".Based on China's low cost advantage of labor and resource environment,the remarkable economic growth is brought about by sustained capital accumulation,human resources enhancement and technological efficiency improvement.The institutional reason for this dynamic resource accumulation and technical efficiency improvement is that the China's local governments committed to promoting the area economic growth.The development-oriented local government plays leading role in China's remarkable economic growth and the development of industrial economy.However,ith China's economy entering a new stage of development,China's original low-cost advantage in the international market has gradually disappeared.Under the new situation,the Chinese government proposed to implement the innovation-driven development strategy,which has strategic significance for China to form new advantages in international competition and strengthen the long-term impetus of industrial development.At the same time,the local economy development met a sluggish and unbalanced situation recently,which means the local government needs the role adaptation accordingly.Therefore,the research on this issue still has important practical significance and theoretical value.Taking the role adaptation of local government in the healthcare industry cluster of Xuhui district in Shanghai as a case,this paper takes the developmentoriented government theory as a theoretical analysis tool to analyze the role of local governments,the guidance mode,the dilemma and the corresponding resolutions in the industrial clusters development.Through analyzing operation modes of healthcare industry development in the great Boston area of United States,the author summarizes four key points for the role adaptation of local government in industrial development and the experience we can draw from them.The author draws the conclusion that local governments play a very important role in guiding the development of industry.The local government must handle well the relationship with the market,and carry out the long-term industrial development strategy,create the professional appraisal mechanism,provide the innovative ecological environment,and adhering to the combination of government's macro design and market orientation.Then local governments could adapt their roles to the new circumstances,give full play to their maximum value,and promote the development of industrial clusters,which helps to promote stable and sustained growth of local economy.Compared with the existed research results,the contribution of this paper is mainly focusing on the following aspects: firstly,based on the perspective of developmental local government,it provides the theoretical framework to better understand the industrial guidance role in the national innovation driven strategy;Secondly,this paper is based on the practical cases of local government guidance mode of healthcare industrial development in Xuhui district of Shanghai,demonstrating the effectiveness and deficiencies of this mode,and expanding the measurement perspective of existed studies.The deficiency of this paper lies in that the reform of the investment attraction system in Xuhui district of Shanghai has only been formally operated for three years.Therefore,the data source of empirical analysis is limited and the support for the conclusion is still insufficient.At the same time,the study need to pay close attention to the changes of national policy and the progress of local practice.The problems and countermeasures should be adjusted accordingly.This is a major difficulty in writing this paper,which is also the most important practical value.