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Research on the Influence of Product Space Location on the Upgrading of Manufacturing Industry——Taking Zhejiang Province as An Example

GUO Jiang;LI Yang;Business School, University of Shanghai for Science and Technology;  
The location of the industry in the product space will lead to different direction and path of industrial upgrading. Therefore, it is necessary to identify the location of the industry in the product space and formulate differentiated industrial upgrading policies for it. This paper uses the product space correlation model to identify the location of Zhejiang Province's manufacturing industry in the product space and the relationship between various industries. It is found that the industries in the dense and highly related areas have strong production capacity and can transition to adjacent related industries so as to promote their own industrial upgrading, and the industrial innovation in central and dense areas of product space has a more significant impact on industrial upgrading; industries in sparse and high-related areas should call forth all of their accumulated production capacity to promote their own development; and industries in low-related areas should transfer the production they occupied.
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