Research on the Development of Industrial Upgrading Based on PCA/DEA

Industrial upgrading is a dynamic process that the industrial structure changes from a low level to a high level, thereby improving the economy. Firstly, in order to measure the development of industrial upgrading, this paper proposes four main quantitative indicators, which are the proportion of industrial structure, the degree of industrial growth, the direction of industrial upgrading, and the average annual change of industrial structure. Secondly, six factors containing technical level, the capability of technological innovation, resource supply, the rising costs, foreign direct investment as well as export demand are put forward, and then how these factors affect industrial upgrading is also qualitatively analyzed. Moreover, based on the above indicators and factors, an index system is built to evaluate the development of industrial upgrading. Finally, take the industries of Shanghai in 2001-2010 as subject, and use PCA and DEA to measure the development of industrial upgrading in Shanghai.