Technology Capital, Factor Endowment and Industry Development

China is a big developing country in the way of industrialization and so that manufacturing will be the dominate industry in a long run. In the situation of manufacturer role, comparatively inferior status of Global Value Chain, unbalanced factor endowment and fade-away of traditional comparative advantage, stressed by severer international competition and global financial crisis, it is imperative to research on national economy security, industry and enterprise development. This paper rethinks the inherent drawbacks of industry structure of China, proposing that it is the inevitable path choice to accumulate technology capital, foster strategic prospective industries and produce long-run competition advantage by analyzing industry structure, dynamic resource allocation and independent technological breakthrough based on the proposition of factor capital.