Introduction to Smart Manufacturing: Value Chain Perspective for Innovation and Transformation

2.1 Cornerstone of China’s National Economy

The manufacturing industry is one of the pillar industries of China's national economy, the carrier for science and technology development and a bridge to productivity conversion. In 2010, China's share of global manufacturing output rose to 19.8 percent. Comparing with 19.4 percent of the U.S., China has become the world's manufacturing superpower. With over 200 kinds of industrial products output as well as export ranking top one in the world, China has become a truly big manufacturing center of the world. However, there exists a considerable gap in China's manufacturing technology and equipment manufacturing capacity, compared with other manufacturing powers in the world. Many of research and development activities are visible in the area of advanced manufacturing theory and technology. Research institutes and universities are sought for providing the source of innovation for the production of China’s manufacturing equipment to break through the blockade of high end manufacturing technologies by developed countries. This is of great significance in helping ensure national security and sustain healthy and stable development for China. Furthermore efforts are needed to carry out cutting edging research and development in smart manufacturing with aims to further expand and deepen the manufacturing technology innovation, help China develop into a high end manufacturing power, accelerate the transform from “Made in China” towards “Created in China.”