Tang, M.; Wang, H., and Huang, W., 2019. The influence of industrial policy on the industrial economy of the urban agglomeration around the coast of Hangzhou Bay. In: Yu, T.-s. (ed.), Environmental Sustainability: Water Resources Integrated Management and the Development of Coastal Environments. Journal of Coastal Research, Special Issue No. 96, pp. 32–41. Coconut Creek (Florida), ISSN 0749-0208.

This paper first defines and clarifies the theoretical framework of industrial policy and industrial structure, and then analyzes the relationship between industrial policy and industrial structure of Hangzhou Bay through case studies about domestic and international cases and empirical research. The results revealed from the present study will have important theoretical and practical implication for governments to improve the relationship between industrial policy and industrial structure, and promote the sustainable and healthy development of the industrial structure of Hangzhou Bay. The main results are: first, from 2000 to 2018, the urban agglomeration around Hangzhou Bay (UAHB) has grown more than ten times, but there are considerable differences among different cities; second, the growth rate of the output of the primary, secondary and tertiary industries of UAHB is less than the growth rate of the output of the whole country, and there are significant differences among the output values of the primary, secondary and tertiary industries of different cities; third, the industries in Shanghai, Hangzhou, Ningbo, Huzhou, Shaoxing, Jiaxing, and Zhoushan are highly complementary, and the industrial structure problems brought by their capital are more serious than the problems brought by labor force; fourth, the total number of industrial policies and tertiary industry policies of the cities increased year by year, but the number of policy about the secondary industry begins to decrease. According to results revealed from a literature review and interviews with experts, this paper suggests that the urban agglomeration around Hangzhou Bay should focus more on the planning of policies about the development of the second industry. In making the policies, it is suggested to consider factors such as technological development, high quality, macroeconomic and microeconomic factors (e.g. market competition, administrative monopoly, scale discrimination and industrial clusters), and the latest industrial policies implemented in developed countries.