s: Shanghai is one of the most important industrial centers in China Since the implementation of reform and open policies, with the market economic system gradually being built up, the industrial spatial structure in Shanghai has turned out the following pattern The labor intensive urban industry will be located primarily within the inner ring road, technology intensive industry between the inner ring and outer ring roads, and capital intensive "pillar" industries, which include heavy industries and chemical industries, primarily in the exurbs beyond the outer ring road Accordingly, as one moves outward from the city center, the degree of labor intensity and the efficiency of industrial production per unit of land will gradually decline, while capital intensive production, the contribution to the city's overall economy and the influence to the environment gradually increases It thus performs an obvious circularity structure Conventionally, Weber's industrial location theory mainly analyzed the effect of raw material and fuel, market, transportation cost and agglomeration to the location of industries from the static view However the layout of industry in Shanghai has shown that it is not sufficient to analyze the location of industry only from static view It's very important to discuss it in a dynamic way In addition, with the development of new industries, there are still some other important factors besides the above-mentioned four, such as rent at different ranks and modern transportation implement will also deeply effect the industrial location in Shanghai Furthermore, as one of the relatively developed metropolises in developing country, employment has taken a more and more important role in the economic and social development in Shanghai, and thus the influence of employment in the layout of industry is more obvious For the improvement of industrial allocation, Shanghai should greatly enhance the efficiency of industrial land, emphatically establish the industrial parks affiliated to the central government or the municipal government, and sharply decrease the quantity and area of parks affiliated to the villages or towns government Shanghai should also rationally construct some manufacture basements Hi industries should be mainly developed in Jinqiao, Zhangjiang, Waigaoqiao (in Pudong) and Caohejin (in Puxi) In the region out of outer ring road, the pillar industries such as motor vehicles manufacturing, steel industry, petrochemical, power generating electricity equipment and fittings manufacturing will be developed mainly in Baoshan, Jinshan, Minhang, Songjiang, Jiading, Kangqiao and Pudong New Area In addition, Shanghai government should formulate some relevant policies to stimulate the modification of industrial allocation First of all, the government should try to change the development mode of township enterprises and to accelerate their shift to the industrial parks affiliated to the central government or the municipal government through multiple means and thus realize the target of each town (village) possessing one industrial spot Secondly, there should be some policies to strengthen the relationship among universities, research institutes and enterprises, and thus accelerate the industrialization of research results Finally, enterprises should positively take part in the plan of infrastructure in the exurb and thus strengthen the coordination between infrastructure plan and industry layout plan All the above policy advices are very important for sustainable development of industry in Shanghai