Research on the Influencing Factors of Our Country’s Advanced Manufacturing Industry Development

Extensive traditional manufacturing industry which increases output relying onputting into more investment, causes serious pollution to the environment progressingto intensive advanced manufacturing industry are the requirement of breaking theconstraints of the resources and environment and sustainable development. It isobjective principal of manufacturing industry’ development and such process areirreversible. Government of both advanced developed countries and developingcountries has formulated related policies, introduced measures and given financesupport to encourage and guide the development of the advanced manufacturingindustryThe research object of this paper is China’s advanced manufacturing industry.The research process is as follows: first, analyzing the connotation and characteristicof advanced manufacturing industry, then, describing the development of theadvanced manufacturing industry in the United States, Germany, the United Kingdomas well as our country, then, qualitative analyzing the main factors including theforeign direct investment, technology progress, fixed asset investment, human capitaland enterprise cluster which affect the development of the advanced manufacturingindustry, further more, establishing measurement model to test the main factors byusing2000to2009,30provinces, autonomous regions, municipalities directly underthe central government panel data. Finally, putting forward some suggestions for thedevelopment of our country’s advanced manufacturing industry according to thequalitative analysis and empirical results.Both the qualitative and empirical analysis tell that the foreign direct investment,research and development, fixed assets investment, human capital and enterprisecluster play a positive role in promoting the development of our country’ advancedmanufacturing industry. In general, foreign direct investment is beneficial to thedevelopment of the industry, although it has certain negative effect. Technologyprogress is the key factor to promote the transformation of the traditionalmanufacturing industry into advanced manufacturing industry. Fixed assets investment and human capital are the bases of the development of our country’sadvanced manufacturing industry. Enterprise cluster effect can create scope economyand scale economy increasing the input and output efficiency and promoting thedevelopment of the advanced manufacturing industry.