The main content of industrial location theory

The main contents of industrial location theory include: traditional theory, modern theory, the advantages of geographical location, the influence of spatial connection, industrial regionalization and so on.

1, traditional theory: the traditional industrial location theory is the early scholars of the research results, mainly focusing on the problem is how the industrial enterprises to choose the site. The theory that the production cost of enterprises is the most important factor in the choice of site. And the determinants of choosing a factory site generally include transportation costs, labor costs, raw material costs and market costs.

2, modern theory: modern industrial location theory that the choice of industry, in addition to the factors based on traditional theory, is increasingly affected by technological progress, R & D investment, industry scale and other factors. The establishment of modern industrial cluster innovation system has a huge role in promoting the growth of regional economy.

3. Advantage of geographic location: the advantage of geographic location is one of the important elements of industrial location theory. Generally speaking, relative advantage refers to the geographic location is closer to the market, further away from competitors, easier access to resources or labor. For example, an automobile manufacturer will establish itself in a location where there are a large number of parts suppliers nearby, which will reduce transportation costs and provide better control of the supply chain.

4, the impact of spatial linkage: industrial enterprises to choose the site, spatial linkage is also a very important aspect. Spatial linkages can be described as the influence of logistics, human resources, other companies and industrial policies in time and space. These linkages allow firms in a given area to connect with each other as a tightly knit ecosystem that continuously creates core competitive advantages.

5, industrial regionalization: industrial regionalization is the phenomenon of manufacturing concentration in a particular area. In the industry regionalization is many of the same industry enterprises gathered in a certain area, fully collaborate with each other, creating a relatively stable environment, so that their level of added value is higher. For example, the electronic information industry in Shenzhen, China.

Industrial Location Theory (ILD) is a theory of how industrial firms choose where to manufacture their products. It is a cross-cutting field of economics and geography that seeks to describe why industrial clusters are more prevalent in some places than in others, and to analyze the reasons for this finding at both the economic and geographic levels. The theory of industrial location is an important guide to the study of industrial firms' production decisions, economic geographic distribution, regional economic growth, and other fields.

Industrial location theory is a set of tools with theoretical value and practical application value, which can scientifically analyze and research on the choice of factory sites by enterprises and regional economic growth. At the same time, the industrial location theory guides the government in promoting industrial development and formulating local policies, which need to formulate management measures and programs according to factors such as the business needs of enterprises and the needs of the market, in order to achieve sustainable economic and social development.

Importance of Industrial Location Theory

1. Guiding business decision-making: Industrial Location Theory provides a set of theoretical system to help enterprises better choose factory sites. Enterprises in the choice of plant location, in addition to cost and other factors, but also need to consider market demand, technology level, policy environment and other factors, so as to make better business decisions.

2, guide the government to formulate policies: the government should be based on the scientific analysis of industrial enterprises to choose plant sites, and reasonably formulate local policies conducive to industrial development. The formulation of policies can fully explore the advantageous geographical location, high-quality human resources and other resources to attract more enterprises to move in and promote the development of regional economy.

3, promote industrial development: industrial location theory provides new ideas and methods for solving industrial development problems. By analyzing the influence of various factors on industrial layout, it can scientifically formulate science and technology innovation strategy and industrial development planning, and promote industrial development.

4. Enhance the level of industrial development: the concentration of production enterprises will form industrial clusters, which will be driven by mutual assistance and competition to continuously improve the production efficiency, technical level and added value of enterprises, enhance the level of industrial development of the whole region, and expand the economic scale of the region.

Industrial location theory is of great significance in guiding business decisions, promoting regional economic development and enhancing industrial development. Industrial enterprises can make better strategic layout according to industrial location theory, and the government can make more scientific local policies according to industrial location theory to promote industrial development and regional economic development and prosperity.