What are Affiliated Chains?

Related industries are industries that are closely related to the operation of the main product or service. Associated industry is an industry that directly cooperates with and develops around the leading industry. It has the most direct and closest connection with the leading industry in input-output or process and technology. Associated industries are the supporting and coordinating departments of the leading industries, which vary depending on the leading industries.

Related industries

According to the way of connection with the leading industries, the related industries can be divided into forward-linked industries, backward-linked industries and side-linked industries. The forward-linked industry is an industry that uses the products of the leading industry, the backward-linked industry is an industry that provides production materials for the leading industry, and the side-linked industry is an industry that provides technology, energy and other services for the leading industry. It is not difficult to see that the related industries will be different due to different leading industries.

The chain formed by the related industry itself is the related industry chain. According to the relationship between the related industry chain and the main industry chain, the related industry chain can be divided into supporting industry chain and driving industry chain.

(1) Supporting the industrial chain

The supporting industrial chain refers to the connection between the industrial sector that provides protection and support for the completion of a certain type of product or service from formation to consumption, and the main industrial chain. The industrial sectors that provide protection and support for the main industrial chain are mainly production factor sectors, such as land, facilities, equipment, raw materials, energy, funds, technology, talents, information, and intermediary services. The factor industry supports the development of the main industry, which in turn drives the development of the production factor industry. The supporting industry supports the main industry with its own terminal products or services, and is connected to each link of the main industry chain. These industries are supporting industries for the main industry, and for themselves are also a complete main industry chain composed of different links upstream, midstream and downstream. Without these supporting industries, or although they are ineffective, the production process of the main product or service cannot be started, or cannot be continued, or cannot be completed, or it cannot enter the cycle of reproduction. Therefore, it is impossible for an industrial sector of a certain type of product or service to exist in isolation, and it is necessary to establish a life-and-death relationship with the industrial sector that is guaranteed and supported. Any main industry chain has its own supporting industry chain, which is not transferred by people's will.

(2) Drive the industrial chain

The driving industry chain refers to the connection between the main industry and the driven industry due to the existence and development of a certain type of product or service industry, which drives and affects the development of other product or service industries. For example, the development of processing and manufacturing industries in the South has attracted a large number of foreigners to work and promoted the development of the local real estate industry; the relationship between the existence and development of the cultural and entertainment industry and transportation, tourism, accommodation, shopping, catering and other industries. For the cultural industry, the driven industries are mainly service industries but not limited to service industries. The logical relationship is also two-way interaction: the main industry drives or attracts the development of related industries, and the related industries promote the further development of the main industries. Drive the industry to provide services to the main industry with its own terminal products or services, gather to the main industry, and connect with each link of the main industry chain. They belong to the driving industry for the main industry, and for themselves they are also a main industry chain consisting of upstream, midstream and downstream links. Whether it is the material product industry or the spiritual product industry, they each have their own driving industries, but the number and size are different. Whether it is a producer of physical or mental products, or a consumer of those products, other departments need to provide them with a variety of services.