study of Global Value Chain Governance and Local Industrial Network Upgrading——Case of Pudong Integrated Circuit Industrial Network

With the development of globalization,local industrial networks characterized by geographical agglomeration of economic activities are being embedded in global value chain. Therefore the global linkages are more and more important to local industrial network upgrading. At first the paper define the conception of value chain governance and its' types. Then analyzes the influences of global linkages in local industrial network upgrading by focusing on governance of global value chain. Based on that,the paper makes a case study on Pudong Integrated Circuit(IC) local industrial network and inquires into the great influences in upgrading of Pudong IC network of the leading companies in global value chain. At last,the paper draw a conclusion,which is not completely agree with those in similar researches in some other developing countries. The paper argues that promotion or hindrance to upgrading of local industrial networks of leading corporations as the governor of global value chain is determined by whether upgrading of local industrial networks injures their key competitiveness,but not by the types of upgrading. Hopefully,this will be a modification to some findings in the international academic circles in this field.