Analysis of Chine IT industry Convergence Bad on the Perspective of Game Theory
Wei Nana, Zhao Hong*
Tianjin Polytechnic University, Tianjin, China
Email:
Abstract—The revitalization of IT industry reprented by the electronic information industry is the structural adjustment measures which China respons to financial crisis. It shows some indication of industrial convergence to a certain degree currently, and the relevant rearch is not enough. This paper studies the situation of IT industry convergence of Chine systematically and analyzes the root through the establishment of Dynamic Game Model, looking for the key conditions, and finally puts forward some countermeasures to attempt to ea China's IT industry convergence, which will promote the Chine IT industry to develop continuously.
Index Terms—IT industry, game theory model, industrial convergence
I. INTRODUCTION
男科检查
According to the definition of government departments, IT industry includes electronic information product manufacturing industry, software industry,
communications industry and the national economy and social information, while the electronic product manufacturing and software industries are named the electronic information industry. Electronic information industry, in order to achieve the production, processing, treatment, dismination or receive information, are
engaged in equipment manufacturing, hardware manufacturing, systems integration, software
development and application rvices which related to
information electronic product using the electronic
technology and information technology.
After reform and opening up, the total output of IT industry achieve d to 8.2667 trillion in 2008, accounting for 27.5 percent of GDP, which has played an important role in promoting the national economic growth and has been strategic, basic and guiding pillar industries in China. In particular, the revival of electronic information industry are an important measure taken to adjust the industrial s
tructure, that is to say, the development of IT industry has important strategic significance in the development of China's economy. But some experts believe that [1] Chine IT industry's development is not efficient currently, which is in a downstream location in the world industrial chain and who structure is with varying degrees of convergence, resulting in the productive capacity is greater than product digestive capacity and repetitive construction and investment, and even affect the ability of IT industrialization. The reason is mainly the unapt policy implementation caud by the game of the central and local governments for economic interests. The current rearches are as follow: Wang Hui (1999) pointed out that China's information industry is small scale, scattered and clod, resulting in duplication imports of foreign technology and equipment, construction dispersion, or even the non-uniform of technical standard making it difficult to compatibility. Shang Zhiming (2004) thought that the Chine IT product and industrial structure all existed convergence. In addition, there are some related literature [2] about the reasons for the convergence of IT industry analysis, most of which are the characteristics of the industry – without the constraints of natural resources and industry profits. Lu Xianxiang thinks China is undergoing the transition
period of new and old systems, and local governments are
still the main body and the internal drive and external stimuli for investment pursuing political interest
are the
key source of the industrial convergence. Bad on the rearch results, the paper applies the overall root-cau analysis of the convergence to the specific field of IT industry, combined with the characteristics of IT industry itlf, and analyzes the convergence phenomenon of China’s IT industry by the u of game economics. II. T HE DEVELOPMENT SITUATION OF CHINA IT INDUSTRY IT industry has been in critical stage, while the
electronic information industry has been taken as one of
China's revitalization industry.
A. Huge demand at home and abroad markets with a bright future China is the first major industry and the largest export industry, who output ranks the fourth in the world, mainly from the Pearl River Delta, Yangtze River Delta, Fuzhou-Xiamen coastal areas, and the Bohai Rim. According to the global IT Outlook IDC (Internet Data Center) predicted, the data of the world's annual growth rate of IT spending from 2005 to 2008 shows that the US grows at a rate of 5% , less than 6% in Western Europe, and Japan 1% to 2%, while China is to 13.3%. In other words, the Chine share of global is 3% and this figure will be to 4% in 2009.What’s more, in 2005 China's expenditure in the software i
s only 11% of total IT spending, and 2008 is 13%. China IT industry market is in start-up period, and software deep-rooted applications have great needs.
project number: 08ZLZLZT04100 *corresponding author ISBN 978-952-5726-00-8 (Print), 978-952-5726-01-5 (CD-ROM)
Proceedings of the 2009 International Symposium on Web Information Systems and Applications (WISA’09)
Nanchang ,P .R . China , May 22-24, 2009,pp .544-547
B. Uncoordinated industry structure and overweight
manufacturing
The data published by Chine Ministry of information industry in 2008 shows that the total information industry sales reached a total of RMB ￥8.2667 trillion, in which electronic information industry accounted for 71.16%. In addition, the value
added from IT is RMB ￥1140.79 billion, accounting for
3.8% of GDP. The specific is as follows figure1. From Figure1, it is found easily that, China's IT industry has much space and there is some distance from the real pillar industries and leading industries. The output of manufacturing ctor accounts for most of the information industry and the core technology in industry chain is only a small part. The output value of manufacturing is more 6.89 times than software ctor while the growth rate of software is 2.33 times than manufacturing ctor.
It is clearly that that the developing speed of electronic information manufacturing industry is slowly than the software, but the scale is far greater than software. So China's information industry structure is unreasonable, and lacks high degree of industry.
C. Simultaneous existence of industry and products convergence Statistical indicators information industry in National High-tech Industrial Development Yearbook is the output of computer and office equipment manufacturing and electronic and communications equipment manufacturing, from which we can know the status of Chine manufacturing information industry. In addition, some
sub-results showed 90% of manufacturing concentrated
in the eastern region. Therefore, we will analysis the three pillars industry of information in eastern regions to explore the convergence phenomenon. The advantages Products of the major cities as follow table 1.
From the table 1, we can draw the conclusion that the country has not completely formed overall industrial chain, and the main city only establishes their own system of information industry, resulting in the convergence of model and the convergence of industries and products [3]. On the whole, among the 53 state-level high-tech development areas, 30 areas asmble Compute currently. The r
apid development does not mean that there is no limit to industrial development, and it is objective. The lack of co-operation, or the clod-end collaborative rearch pattern results in information technology not achieving to the world advanced level.
In conclusion, IT industry as China's basic industries and leading industries, its development is of strategic
significance. However, becau of various factors, industry convergence is rious, affecting the revitalization of the electronic-orientation IT industry. This paper, combined with characteristics of IT industry, further explores the root of industry convergence. III. T HE R ESEARCH T OOL OF C HINESE IT I NDUSTRY
C ONVERGENCE :
D YNAMIC G AM
鲜带鱼E M ODEL
IT industry has its own characteristics, the product of knowledge-bad economy, which makes natural endowment not be the main location factors affecting the industry layout. However, its layout
is more affected by the impact factor of knowledge, technology, capital and information. So even though the initial industry policy is to make IT be basic industries, it caud instructional industries convergence so that the pillar industries can’t achieve scale economies and agglomeration economies, that is to say, high-tech information industry shows
industrial convergence after traditional industries. This problem is a result of loo policy implementation. Why? How does this policy place deviation? Using the game economics, combined with the characteristics of the IT industry, this paper ts up the game model between central and local governments, analyzing the root as follows. A. The basic assumption of this model
(1) There is time order between the central government regulation and local government’s reaction. If the central government regulation and control measures are not taken,
it will definitely lead to the liberalization of local acts. So in order to achieve the maximization of the overall economic benefits, the central government's macro-control is esntial.
(2) The central and local governments are both parties involved in the game and both are rational.
(3) Both sides are aware of their payment function under each circumstance and their action can be
obrved by each other before the lection of action, which are called complete and perfect information dynamic game model.
(4) Bad on the assumption of IT industry itlf Table 1 Region advantage product of IT industry Source: sort out from city ranking list in IT industry 2008 Regions Advantage Product of Region Shanghai information product manufacturing 、
microelectronics and miconductor 、software online games
Beijing
尊严作文Communications equipment 、microelectronics and
miconductors 、software 、online games Tianjin information product manufacturing 、communications equipment
Hangzhou communications equipment 、microelectronics and miconductors 、software 、online games
Shenzhen microelectronics and miconductors 、software 、online games
Guangzhou
software 、online games
Chengdu
microelectronics and miconductors 、online games
characteristics, if the Central Government encourages local development to develop the industry and make it become industrialization, the local governments are bound to implement the central principle rightly, so this model only discuss the ca with the central government restrictions in macro-control situation. B. The game tree of dynamic game model
A is the local governments’ gains which is got through benefit-sharing mechanisms when they don’t develop; αare economic benefits and political of local governments through the development of the IT industry, βmeans the loss got through being contrary to the central government by punitive mechanism,
B is finally proceeds of the local government in this ca.
IV. M ODEL ANALYSIS AND CONCLUSIONS
什么叫宫缩Generally, the central issued industrial policy before
local action; local governments have two choices宝宝奶粉排行榜
(develop the industry or not). Assume that local development industry will have profits, more or less. What’s more, the local to pursue small and complete industrial system, so when the central to encourage the development of some industries, local is bound to develop the industry; when the central restricted some industry from the overall point of view, the local will begin to weigh whether or not develop the industry, which is a game. The local will choo to comply with central government control when certain conditions are met ,which is the proceeds, if local governments don’t enter into the industry, is not less than enter the industry. At this ca, the local government gains A through benefit-sharing mechanisms when it does not enter; αis the economic gains and political achievements through economics behavior, as well as the loss is β through legal punishment of mechanism, then the effective interest is αβΒ=− finally, so the conditions are as follows:
αβΑ≥− Through obrving and analyzing the conditions, it can be known that the current situation of China's IT industry convergence are inevitable emergence becau of macro-control policy failure
that is not satisfied with the condition. How to make the game process be realized in accordance with the situation of pre-designed? The most
direct conditions is to increa A, to reduce α, or to increa β. This supplies a clear prerequisite for the reality application of theoretical model. In addition, the geographical similarity and demand similarity of industry convergence subject make αincread, to induce the phenomenon of industry convergence. But in related rearch, even if the punishment is large and sufficient to counteract the benefits of the industry development, there
will be still be convergence. That reason is the punishment doesn’t consider political achievements of local, we can conclude the current Chine achievement views are not entirely scientific.
This model is assumed to be completely information dynamic game model for good reason directly. Complete information can be a direct manifestation of the warning of the central macro-control. On the contrary, if incomplete information, the local government will not consider the direction of the central government's macro-control. Of cour, the assumption is not always in line with the reality of the situation, so measures must be taken to ensure that the model's basic assumptions - complete information. In addition, the assumption of dynamic model excludes the possibility of mixed-strategy
model [4] directly which regards macro-control economies as internal factors and does not correspond to reality.
Conclusion: As long as all the conditions of model are met fully, we can alleviate the situation of the convergence of IT industry.
V. C OUNTERMEASURES FOR EASING THE IT
INDUSTRY CONVERGENCE BASED ON DYNAMIC MODEL A. Government must actively create a favorable policy environment Firstly, intensify industry theory propaganda so that the economic principal parts are aware that industry convergence can t back the economic role, and the development of diversify. The characters of special and strong are the key to the development of local economy by leaps and bounds. Secondly, t up effective benefit sharing mechanisms [5]. On the one hand, the way to solving the conflict between Individual and collective rationality is to t up a mechanism, which can give full consideration of individual rationality, but also ensure collective rationality. Bad on this theory, one of the ways to resolve the conflict should t up benefit-sharing mechanisms. The benefit of sharing not only includes direct economic development benefits, but also such as local political performance, to ensure that all sides are balanced, making the Government keep macro-control effectiveness. On the other hand, the measure is a direct
respon to the key conditions of the game model of A, to provide the actual conditions for the theoretical model.
Finally, improve relevant laws and information flow
mechanisms. On the one hand, for the Government's macro-control independent of market economy, in order to play its role fully, industry curity system and the
corresponding enforced-measures are esntial. On the other hand, the measures directed to provide a prerequisite against the game model of the key part β for the application of theoretical models; the
improvement of the flow information mechanisms directly ensure the basic assumptions of complete information dynamic game model to facilitate legal mechanisms warning. It can be said that punishing and warning of legal mechanisms have been fully realized
through the adoption of the policy.
B. IT enterpris should actively take advantage of Merger and Acquisition strategy天下大事
The effective way to adjust industrial structure is mergers and acquisitions (M&A), including domestic and international. Especially in financial crisis, the cost of purchasing a foreign enterpri will not be higher than a technology business costs before. Therefore enterpris should be aware of the benefits of M & A: resources, markets, technology etc, and actively participate in the wave of corporate mergers and acquisitions, while the Government should formulate a reasonable policy to encourage merger, as well as purcha and holding league. In the field of electronics and information, one or two large-scale world-class multinational companies must be train to promote Chine company changing from small to large and medium-sized. In addition, they must be good at grasping the key of development advantages, and make the international location of IT industry and development direction clear, and then locate company business and product position.
葡萄酒等级C. IT companies should respond to the revitalization of
the national industrial plan under financial crisis and achieve export-oriented enterpri information modernization
Export-oriented enterpri information modernization refers to e-commerce external and ERP internal. Financial crisis led to decrea in demand of export-oriented foreign companies, so enterpris need to develop domestic market. However, export-oriented domestic enterpris do not have complete marketing system, the costs of re-establishing traditional marketing system are too high, which takes opportunities for network marketing.
First of all, IT enterpris should actively guide the development of e-commerce [6] and advance the enterpri ERP, achieving complete information of enterpri inside and outside. This can be developed from information on starting business, and drive the development of upstream and downstream enterpris. Secondly, IT companies should strengthen the combination with financial institutions and logistics enterpris; increa the rearch about information curity, to keep transaction curity. Finally, business should develop industrial software and embedded software in respond to policy, and strip software rvice center in the iron and steel and the automotive industries to become software companies independently so as to improve the efficiency of software applications; Web animation enterpris can take software outsourcing, making product developmen
t and design, process control, business management, marketing as the point of enhancing to enhance the level of industrial automation, the intelligence and modernization of management.
A CKNOWLEDGMENT
This work was supported in part by a grant from Program on development stratagem of the science and technology of Tianjin.
R EFERENCES
[1]Krugman.Paul. Development,Geography and Economic
Theory (in translation) [ M]. Beijing University Press, 2000.
[2]Li Yonglu, Li hair. China's Industrial Economic Rearch
[M]. Southwest University of Finance and Economics Press, 2002.
[3]Dou Jianmin. Caus of China's Industrial Structure
会唱歌的生日蛋糕
Convergence and its Integration [J]. Productivity Rearch,
2005, (8).
[4]Deng Rd. Effectiveness of Control ,the Protection of Places
and Industry Convergence around the Bohai circle [J].
Bohai Economic Outlook, 2008.
[5]Wang Yongfeng, Hua Yiting. The Empirical Studies of
Convergence of Industrial Structure in Bohai region [J].
Economics and Management, 2008 (2).
[6]Jiao Li, Chen Yu. Environment Simulation of the
Operation Mode for E-commerce Supply Chain, the thirteenth Session Proceedings of the China Information Economics Society Annual Meeting [C]. Renmin University of China Institute Information.
