The Optimize and Upgrade of the Urban Industrial Structure Based

The Optimize and Upgrade of the Urban Industrial Structure Based
on the Development of the Culture and Creative Industry
WANG Xindong, ZHOU Xiuling
Beijing Information and Technology University, Economics and Management Institute, 100192
[email protected]
Abstract: The urban industrial structure optimizes and upgrade first represent the restructure between
the three industries. But concern of the sizeable account of services sector in the city, the creative
industry optimizes and upgrades performance two levels. First, the high concentration of the segmenting
business market in the third industry. Secondly, optimize and upgrade formed in the industrial chain.
The development of the culture and creative industry has a positive role in promoting the city’s two
levels of industry optimize and upgrade.
Keywords: culture and creative industry, urban industrial structure, optimize and upgrade
1.
Introduction
Urban industrial structure is referred to the certain relationship and proportion relationship between
various industrial sectors in the city. The optimization and upgrading of the urban industrial structure is
dynamic and continuous process. When there is no room to restructure the third industry, the adjustment
then will be happened in the internal of the third industry and the industry chains. The development of
the culture and creative industry is the main form of the urban industries restructure. And by the industry
chain and the coupling relations, it is improve and enhances the quality and nature of the chain links and
promoting the optimization the upgrading of the industry chain restructure.
2.
The Tendency of Urban Industrial Structure Optimizes and Upgrade.
2.1 The achievement of structure readjustment during the three industries.
The first form and the main content of the urban industry structure optimize and upgrade is the quantity
change in the third industries. Mid-17th century, William • Petty out of a conclusion: In order to get
more pay interest, the labor force transfer from the agricultural to industrial, the turn into business and
service. In 1994, Clerk out of further conclude: alone with economic development, industrial structure
of a society in terms of the proportion of the labor force, or from the perspective of national income ratio,
are transfer from the first industry to secondary industry, and then over to the third industry trend.
History of urban development confirms the roughly corresponds relationship between evolution of urban
structure and degree of urbanization or the expansion of city size. Small town depend on the first
industry, mid-size city relay on the second industry, the biggest and the super city put the third industry
in the main place. This is the structure evolution law embodied in the cities. The evolution of urban
industrial structure according with the history of economic development turns one by one, from
equilibrium to a new equilibrium. This is caused the high elevation of urban industrial structure, and
showing a gradient across the stage. The evolution of industrial structure is essentially a lower level
industry gradually turn into decline after the mature, higher levels of industry forms the basis of the new
process of growing, Optimization of urban functions also will occur, resulting in a greater impact on
other regions and driving effect.
2.2 The achievement of structure readjustment during the subdivision of the three industries.
Urban industrial structure optimization and upgrading is a dynamic and sustainable process. Alone with
quantity changes occur in three industries, the industrial structure optimization and upgrading. The
relative quantities of the first and secondary industries tend to be reasonable and stable. The proportion
of the third industry has already greatly. So the readjustment space will be smaller and smaller by
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readjust the quantity of the three industries. Then the readjustment of the industry structure will be
occurring during the internal. Constantly improve the various segments quality and level of development
to form the optimization and upgrading. These levels will be the main region and content of the urban
industry structure. For example, development of the internal segment structure should orient to labor
intensive, capital intensive, technology intensive which take advantage in industry. Should follow the
low value-added industries to high value-added industries, Should be along the low degree processing
industry (shorter chain) dominant to the high processing industry (long chain). The proportion of
high-tech industry, capital, technology, intelligence-intensive industries, modern service industry,
environmental protection and green industry and other industries are increasing. While the proportion of
labor-intensive, the old industry, pollution and sustainable development industry would gradually
reduced and then die away. This should occur within the three industries.
2.3 The development of modern service promotes optimization and upgrading of industrial
structure.
The development of modern service industry, especially to develop as intermediate inputs and
intermediate goods production needs of producer services. Improve proportion of the modern service
industry in the third industry, and increase the quality level of modern service industry. Strengthen the
development of modern service industry on promote and influence the other industries. This embody
urban industry optimize and upgrade. And this is the main tendency and prospective of the urban
industry restructure. City should focus on R & D center, technology service centers, product centers,
information service center, an international procurement centers, and distribution centers, financial
services, accounting and auditing services, consulting research services, legal services and other modern
service industry and so on. These are the great significance for the biggest city such as the Beijing and
Shanghai whose proportion of the third industry has already great.
3.
Achievement Industrial Structure Optimization and Upgrading Based on
Chain (value chain) Adjustment.
A city industrial structure adjustment, optimization and upgrading, including two levels of meaning. The
first, during the specific time, the quantity change and the evolution trends happened in the various
sectors. Specific performance is the adjustment between the three industries and the segments of
industry. The second, all industries have formed the industry chain and all enterprises in the chain.
Specifically as follows: enterprises in the industrial chain continuously move to the entire value chain
with strong control, influence and profitability. Increase operation proportion in these areas, reduce and
gradually withdraw from a lower level of those profits and passive part of the business.
3.1 Industrial chain upgrading and the industrial structure upgrading
3.1.1 Chain is the other form of the industrial structure
There are many meaning of the chain, but the essence of the meaning can be summarized as: industry
chain is reflected the interlink relationship among all industries. Chain is associated patterns all
industries based on relevance of certain technical and economic, and it composing some basic and
interdependence industries which forces on serves the specific needing and producing. And then bases
on the logic relationship, time and space relationship objective formed chain-type associated patterns.
The essence of the chain is to descript the specific relation about the Industrial Agglomeration and the
industry structure. From industrial chain link of modern industry point, a complete industry chain
including processing of raw materials, intermediate products, finished goods assembly, sales, service
and so on. Industrial chain links in each chain between the top of the industry. There is a lot of
information, material, products, services, and other aspects of the value of the exchange relationship
exist in Industries (upstream industries and downstream industries) which is on the chain. It represents
the supply and need relationship between industries. and the forms are diversifies. So, chain is an
industry cluster arrangement which connecting raw material resources, products, sales and consumer
and a other form of the industry structure. So adjustment, optimization and upgrading of the chain is as
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well as the industry structure.
3.1.2Value chain is value-added manifestations
Value chain is related concepts of the industry chain. The existence of any one of the industrial chain
and operational development of the industry is able to provide products through the portfolio. To
facilitate appreciate the value of the used resources. The operation process is also appreciation the value.
Due to complicated reasons, the use of resources, appreciate the speed, flexibility and appreciation of
space, the appreciation is not the same. The value of appreciation of the relationship between their input
costs is also not the same. So value chain will be described in various sectors of the value chain
relationships and structures associated with the appreciation. Namely value chain is the industrial
value-added status. on other point of view adjustment, optimize and upgrade of the value chain is the
same to industry chain. So the status and adjustment direction of the value chain is as well as the goals
of the industry restructure, optimize and upgrade. Value chain includes industry (enterprise) value chain
and enterprise value chain. Industry value chain includes all of the industry value creation activities,
which began in the raw materials and terminal of shipping the goods to the customers. Internal value
chain comprises all the value-added chain which exists in all links of enterprise. Due to it included in the
internal of the enterprise, there is no corresponding relationship with the industry chain.
3.2 The form of industry chain optimization and upgrading
There are three main forms:
3.2.1Increase or decrease the quantity of the company.
When a particular industry’s (or industry chain link) character of high-tech is capital, technology,
intelligence-intensive industries, environmental and green industries and recyclable economy industries.
it is the right thing to optimize and upgrade. From the view of the chain, in order to optimize and
upgrade the industry structure, the quantity of these kinds of company should be increased. On the
contrary, some of the industries the city wish to withdraw, then decrease the quantity of the company so
as to optimize and upgrade the structure.
3.2.2 Change the attribute value of the enterprise.
Due to the enterprises on the industry chain have a certain form of supplying and needing relationship,
they exchange some of the products with each other, so the nature of the relation is market relationship.
On the manufacturing industry chain, when the both side of supply and need party are entity business
model, the product the exchange is the final goods. So they all belong to manufacture industry. While
when they are virtual business models, the product is intangible service, one of the enterprise transfers
from the manufacture industry into the service industry. As the Enterprise Virtual operation is essence
the division and exchange process among all enterprises. The object of exchange between them is
operation function. The nature of the operation function is the same to the service products and so the
behavior belongs to exchange the service. When the enterprise division some of his function, and then
gradually form a professional enterprise which provide the fixed product to the customs. At this
process the modern service industry separate from the manufacturing sector. Industrial property business
from manufacturing to productive services, and completed the transfer from "sell products" to "selling
service". For example, in the traditional manufacturing industry chain, those companies who complete
the conversion would be able to provide to the demand party with knowledge-intensive, high
value-added services for the characteristics of products such as product design and development,
equipment installation, spare parts supply, equipment Remote monitoring and control, maintenance and
fault diagnosis, training, marketing, network marketing model and the establishment of the logistics
program development and other productive services and so on. Change manufacturing to service
industries, which itself is the main form and content of industrial structure optimize and upgrade.
3.2.3 Change links on the industry chain
manufacture industry not only includes the production-manufacturing but also includes product design,
raw material procurement, storage and transportation, order processing, wholesale and retail business as
well as six terminal part of the so-called "6 +1" chain link. From the current world economy, this
six-session value created about 90%, while manufacturing value creation should be 10%. It is the
so-called "smile curve" describes the situation. "Smile curve" refers to the whole industry chain (value
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chain) in the value of appreciation of the situation, form a "V" curve. In the left of "smile curve", is a
knowledge-based economy, intellectual property-oriented institutions, including knowledge of research
and innovation enterprise. Down of the left is material down enterprise, processing enterprises. In the
right is a brand, an integrated service-oriented element, constituted by the brands. Down of the right is
the sale corporation. Both tops of the curve is higher value-added part. Right and left last meet at the
"smile curve" bottom part of the arc is the product assembly and manufacturing to low-end products, the
value of here is minimal. Therefore constantly adjust the industrial (business) in the industrial chain
link location. Range from low value-added, value-added potential is small, slow and passive
value-added operations (such as the partner enterprises) in the chain, to increase value-added, high
potential value-added, speed and value-added active management (such as the dominant enterprise).
Implement optimization and upgrading of industry structure. At actual situation, the china is biggest
manufacturing country, so many enterprises at the lower profitable level which state in the world
economic relations. So facility this level of optimization and upgrading of industry structure is
significance to our country especially for our city’s industry structure.
3.3 Diffusion effect of Industrial chain structure optimization and upgrading.
As the industry chain will often break through the boundaries of urban areas, so the city industry
structure optimization and upgrading on the industry chain level is not only directly improve the city’s
industrial structure but also directly or indirectly affect other regions structure. Formation the wider
effects of industry restructure. Reflect the city of its overall economic development of the regional
economic radiation guidance, control and integration role.
4.
Develop Cultural and Creative Industries and the Optimization of Industrial
Structure.
In recent years, cultural and creative industry act as a service industry (most part of the culture and
creative industry is belong to the modern service industry, especially belong to the productive service
industry) have been significant development. The rapid development of new industry, contribute to the
national economy development. And the development of the new industry is become the pillar industry
of many city which is the main content and direction of the optimization and upgrading of urban
industrial structure.
4.1 The development of cultural and creative industry is the main content of the city’s industry
structure optimize.
Cultural and creative industries are to meet the spiritual needs of people which characteristics is
protection the environment, green, energy saving, high intelligence and high profitability. And it is
belong to the high-end industry. So the quantity of the new industry is important symbol of optimization.
Increase the number of the industry should also be a strategic move to optimize its industrial structure.
4.2 Development the cultural and creative industry should facility the other industry optimization
and upgrading.
Cultural and creative industries have very extensive and powerful integration capabilities. The
penetration and integration role put the technology, culture, manufacturing and service together. On the
one hand it increases the meanings of culture and improves the quality of products, optimize the
industry structure, and promote the upgrade of the other industries. So that other industries could be
better and sustainable have the harmonious relationship with the development of society and nature.
Their products to better meet consumer demand for a higher spiritual level and higher the added value.
The other hand, integration with other industries could speed up the development of the cultural and
creative industry so that increase its social value and powerful. In this sense, the development of cultural
and creative industries to promote the upgrading and development of other industries, compare with our
country’s ongoing strategy which the high-tech industry use the information industry to transfer the
traditional industry, change the growth of other industries, promote the optimization and upgrading of
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traditional industrial structure, Take a new industrialization road, the purpose of them are the same. Only
the information industry transfer the traditional industry focusing on modern technology by increase the
operation elements mainly such as technology and information to enhance the level of aggregation,
market competitiveness and comprehensive benefits of traditional industries. Aim at build traditional
industries "hardware" of migration, integration and upgrading. The cultural and creative industry
transfers other industries focusing on culture and ideas by increase various operation element, business
organization and even the operation of process, especially increase the cultural content of company,
product, brand. Improve the soft aspect and form the industry software of migration, integration and
upgrading. They are complementing each other and to better accelerate the promotion of other industrial
optimization and upgrading. It is the right sense the party’s 17major report stressed “speeds up the
transformation of economic growth, promote industrial upgrading". Not only increase efficiency of
elements, improve resource reallocation effect, give full play to science and technology role in
promoting economic development and technological progress on an active role in industrial optimization
and restructuring, but also development the cultural and creative industries, give full play to cultural and
creative industries to boost economic development and optimization restructuring.
4.3 Cultural and creative industry restructure of industry by optimizes and upgrading the
consumer structure.
Cultural and creative industries in the optimization and upgrade of consumption structure can play a
greater role. People's consumption structure in the lower standard of living situation is subject to
influence and constraints of material good. In the case of high productivity, consumption structure is
subject to consciousness and philosophy upon the spiritual level. So the cultural and creative industry
plays an important role in change people’s consciousness and spirit. Cities can play a city of culture,
fashion capital, consumer trends guide. While cultural and creative industries in the creation of material
and spiritual products, also to guide and to create (innovation) needing, cultivate demand and new
demand patterns, creative new life. Development of cultural and creative industries plays an important
role in optimization and upgrading the consumer structure. So that to facility the optimization and
upgrading of industries.
Production is an important part to link the public consumer and various produce elements (including
resources, social resources, human resources, etc.). Which requires as an important form of industrial
production, in adapting the structure of public demand, we must with the kinds of factors of production
a good match. In the shortage economy, in a seller's market structure, the production structure is fully
reflected element have a better match with the resources. To develop the comparative advantage,
produce the shortage products as soon as possible to meet the consumers’ lower demands. At the same
time take into account the co-ordination between the internal industries so that improve the production
efficiency. Between different industries, there are complex relations between input and output.
Input-output structure in and out of industries is an important criterion to evaluate the reasonableness of
structure. In an ideal industrial state, input element should be fully satisfied namely there are no
bottleneck industries. While the output should meet the other industries demand and the consumers
needing with no surplus namely there are no excess industries. Bottleneck and excess are both the
unreasonable structure. In the seller pattern, the producer is the active side in the market relationship
which the production structure always determines the consumption structure. Namely what the
producers produce, the consumer passive spending. This pattern could not truly reflect the consumption
also speak of real reasonable. In the remaining economic conditions and the buyer's market structure, the
consumption structure could affect, restrict, determines the production structure, and affect the industrial
structure, thus production aim at consumption. Because in buyer's market structure, consumers is the
active side adjust market supply and demand. And the demand-decision is the most fundamental reason
to affect the market. While the market relationship turn on to influence and guide the producers’
behavior. Further to influence the production structure and industrial structure. Then the first criterion to
evaluate the industrial structure is whether the industrial structure consistent with the consumption
structure. No doubt the city's economic development at the stage which the consumption structure
largely affect the industrial structure. There is a strong interaction between the industrial structure and
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consumption structure. Optimizing and upgrading the industrial structure should combine with the
consumption structure. The latter one services the former and evaluates optimize and upgrade state.
4.4 The advantage of development the culture and creative industry will strengthen the optimize
pattern of industrial structure.
The city has a variety of needed resources to develop the cultural and creative industry. There is a strong
adsorption with the cultural element, strong capacity to produce cultural and creative products, and
strong power to transfer the cultural products into a cultural fashion cultural phenomenon or cultural
practices which will easy form a hill of culture, a strong cultural transmission and radiation which
quickly promotion and penetration the culture into “depression” of the culture. Enlarge the influence of
cultural and creative products. So develop the culture and creative industry should rely on the city. And
avoid duplication and low-level development. The city as unite to put the cultural and creative industry
together and form the core of competitiveness. In developing the cultural and creative industries the city
played radiation, leading and guiding role. Try hard to strengthen and expand the cultural and creative
industries.
City with a strong organization and promote development of cultural and creative industries. And
centralize the creative person, information, capital, sense of innovation and other related resources on
the geographical situation. Constituted by the number of independent but interrelated cultural and
creative enterprises and related Supporting institutions specialized division of labor and cooperative
relations industry organizations. Enable the city play a planning, coordination and management role in
the cultural and creative industries. Building and improving the policies of protect intellectual property,
increase creative efforts in protecting the interests of enterprise products.
City has good social image, texture itself is a good brand, due to cultural and creative products to meet
consumer demand for spiritual, cultural and creative products and industries that particularity required
the development brand construction. The development of cultural and creative industries in the city, easy
to form the cultural and creative products, enterprise, city "trinity" of the brand system, brand portfolio
and brand of the superposition effect. Therefore, to establishment and maintenance the city brand is
requirements or conditions to develop cultural and creative industries. city brand should upon the
advantage of special resources, and establish a unique positioning of urban development, fully explored,
refined, promote and protect the city's spiritual connotation, cultural identity and city image. Sound,
accurate and differentiated brand will help the city develop the soundness of cultural and creative
industries, while the city brand is shared by all enterprises and people. Conversely, great development of
cultural and creative industry could help the city to establish its brands and spirit.
5.
Cultural and Creative Industries Reflect the Optimization of Structure on the
Industrial Chains.
Cultural and creative industries development in a city influence the industrial structure should be shown
in two aspects: First, the great development of cultural and creative industries is the first level of the city
optimization and upgrading the industrial structure. Second, cultural and creative industries integration
with other industries promote these industries to achieve the second level optimization and upgrading of
industrial structure. In the "smile curve" (mainly manufacturing smile curve), the cultural and creative
industries especially creative industries mainly in the first half and latter half of the smile curve. Such as
product design development phase, the product features innovative, consumer potential needs, brand
building and so on. But product manufacturing in the visible part reflected less. Therefore, to develop
cultural and creative industries to help companies (regional, urban) account for the higher value-added
industry value chain, and form optimization industrial structure upon chain-level.
5.1 Industries based on the full development of cultural and creative industries have good market
competitiveness.
From the view of supply elasticity on the industry chain, the industrial chain can be divided into three
sections: front-end is raw material supply, product design, medium-end is production manufacturing,
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brand building, sales network, and market development for the posterior segment. With the development
of urbanization, the city itself is the result of industrialization. So public infrastructure, equipment and
other equipment, transportation, telecommunications, manufacturing and human resources could
developed well followed by rapid urbanization and easy master by the relatively backward enterprises.
in the pursuit of low-cost internal promotion, a relatively developed cities, regions willing to help
enterprises in backward areas to improve their manufacturing capacity (which is the industry gradient
transfer performance), so larger the elasticity of supply and easier to catch up its competitors. Supply the
raw material is largely depends on local natural endowments. Design needed for the intellectual
resources is the result of development of education and improve overall quality of the workforce. In
order to improve the comprehensive design capabilities to get the higher standard, not only need the
enterprises efforts, but also need the comprehensive strengthen. All of this need time accumulate. The
brand, in particular shaping the brand, need city, corporate, product brand of triple-play (if the
competition at the national level, it is state, city, corporate, product brand of quadruple). It is difficult to
cultivate and more time was needed. So in a short time, the branding capabilities were not greatly
improved and the relatively backward enterprise itself is not easy to cultivate its brand. Therefore under
the relatively inelastic supply, brand owners more easy to create a monopoly for the greater benefits.
Market development, especially in leading consumer trends, it is necessary city, enterprise software and
hardware capabilities, influence and appeal, what are not in the short term can formed. Although the
cultivation of these skills is difficult, but once formed, it will also play a role in long-term and high
barriers to entry what other city and enterprises difficult to catch up. It means more powerful, stable
market monopoly and market competition was formed. So kinds of optimize industrial structure would
play a soundness of social and economic effects in a long-term.
5.2 Industrial structure based on development of cultural and creative industries have soundness
profitability.
From the view of analyze the profitable of industrial chain. In a market economy, as long as full
competition, free movement of elements, there will be form the trend of average profit margin. This
basic principle of economics should also exist in the chain of profitability. But the performance is vastly
different. Because all aspects of the industrial chain is occupied by a different company, itself is the
results of specialized division of labor, enterprise virtualization operating. Enterprise itself occupy a link
of the chain means itself have the core competitiveness. The hard-won competitive advantage can not
easily give up; give up would mean a huge loss, which makes the various elements flow difficult
between the industrial chains. It will low down the average profit margin which formation in the
industrial chain. Processing capacity so easy to form the pattern of supply exceeding demand, prices will
drop, and benefit will lower. But the design and brand building areas are not prone to excess supply and
less prone to vicious competition. So it is tends to maintain a high level of return. Cultural and creative
industries directly involved in, or integrated with other industries (enterprise, elements) indirectly
involved in the industrial chain links, mostly of are design and brand building areas which have strong
profitability and earnings capability. What’s more, these kinds of profit will not decrease in the
competition.
5.3 Full development of industrial structure based on culture and creative industries has a
soundness development initiative.
The market situation companies faced which operating in the industry chain. Brands, channels and
others have occupied the third phase of the chain and they are the final consumer of manufacturing
products. Enterprises in the chain are faced the function exchange market and production market
consumers. This may cause some of the original enterprises produce consumer good turn into enterprises
produce production goods (such as pure garment factory OEM) which in the industrial chain operation
the virtual business model. All production enterprises are equal in the market economy but no equal in
the chain which formed the supply and demand relationship. Brands and channels that often face the
final consumer have master orders which lead them in dominant role in the virtual enterprises alliance.
And stay in the initiative of the function exchange transaction and high-end position of value-added
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chain. At the same time it is other enterprises directions of optimization the value chain. However, this
optimization is a one-way that it is easily the dominant enterprise expansion his business to his member.
But turn over it is difficult. Cultural and creative industries are easy to participant brands, channels
operating part. They are the dominant enterprise in the cooperation and easy to grasp the initiative right.
On this basis, the industrial structure has a soundness development initiative.
6.
Conclusion
The products of cultural industries can be not only the most important and final consumer goods of the
individual consumer in the modem society, but also can be integrated into other industries products. The
cultural industry has a huge development space and the demand of consume is eternal. Energy saving
and environmental protection of the cultural industry could sustainable development. No matter the view
of production and consume, it is both the industrial structure and consumption structure adjustment and
upgrading of the form, content, resource and target. A creative industry as the most important producer
services, the product itself is an important product. So the development of the creative industry is also
promote the adjustment and upgrading of the industrial and consumes structure. And the grate efficiency
of the creative industry is the combining process with other industries. To influence the other industries
(products, chain links) on form the functional transformation, performance improvement, improve the
suitable market, the new derivative resources (market) value and amplification the consumer demand,
demand update, demand-led even create new demand. All these value can be play an important role in
adjustment and upgrading the product and consume structure.
Fund: Beijing Municipal Education Commission Project Social Plan : Research on Development
Strategy of Beijing Cultural and Creative Industry view by
Knowledge Management
SM200910772004
and Beijing Research Base of Knowledge Management Project. Beijing
Business Management Discipline and Graduate Education PXM2010 and Beijing knowledge
management base project PXM2010-014224-094377
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